Pilgrim's Pride Corporation Files Voluntary Chapter 11 Petitions To Address Short-Term Operational And Liquidity Challenges; Receives Commitment For $450 Million In Debtor-in-Possession Financing
Monday, 1 Dec 2008 11:50am EST
Pilgrim's Pride Corporation together with certain of its wholly owned subsidiaries (collectively, the Company), announced that in an effort to address certain short-term operational and liquidity challenges, it filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas (the Court). The Company's operations are expected to continue as normal throughout the bankruptcy process while it develops a reorganization plan to resolve its temporary operational and liquidity issues. The Company's operations in Mexico and certain operations in the United States were not included in the filing and will continue to operate outside of the Chapter 11 process. In conjunction with the filing, the Company is seeking approval to enter into a $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent (the DIP Financing). If approved by the Court, the DIP Financing will provide an immediate source of funds to the Company, enabling it to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations. The Company has asked the Court for additional authorizations, including permission to continue paying employee wages and salaries, to provide employee benefits without interruption, and to continue with its various customer programs.
Pilgrim's Pride Corporation Delays 10-K-Reuters
Friday, 28 Nov 2008 05:59pm EST
Reuters reported that Pilgrim's Pride Corporation's annual report would be late because of ongoing discussions with lenders about temporary waivers under its credit facilities and other financial concerns. The Company said it was unable to file its annual report with regulators by the November 26 deadline without unreasonable effort or expense. It now plans to file the report 15 calendar days after the original deadline.
Pilgrim's Pride Corporation To Lay Off 335 People-DJ
Wednesday, 19 Nov 2008 04:09pm EST
Dow Jones reported that Pilgrim's Pride Corporation will lay off about 335 people at about three dozen locations across the country by the end of the month.
Law Offices of Howard G. Smith Announces Class Action Lawsuit Against Pilgrim's Pride Corporation
Saturday, 1 Nov 2008 02:00pm EDT
Law Offices of Howard G. Smith announced that a class action lawsuit has been filed on behalf of all persons or entities who acquired the common stock of Pilgrim's Pride Corporation between May 5, 2008, and September 24, 2008, inclusive. The class action lawsuit was filed in the United States District Court for the Eastern District of Texas. The Complaint alleges that the defendants violated federal securities laws by issuing material misrepresentations to the market concerning the Company's financial condition, thereby artificially inflating the price of Pilgrim's Pride stock. Pilgrim's Pride produces poultry products in the United States, Mexico and Puerto Rico.
