Pilgrim's Pride Corp (PPC)

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U.S. wants Pilgrim's Pride bankruptcy plan revised
Wed Nov 25, 2009 5:21pm EST Email | Print | Share | Reprints | Single Page[-] Text [+]


The objection was filed by the U.S. Attorney's office on behalf of the U.S. Department of Agriculture.
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Pilgrim's Pride told Reuters in an e-mail that it "will respond to the objection and it will be dealt with at the confirmation hearing."

The confirmation hearing is set for Dec. 8.

In its objection the government stated "there is no authority to excuse noncompliance by the Debtor and the reorganized debtor with applicable federal law and regulations or to excuse, release, or bar appropriate actions by those agencies under federal law and regulations."

In its filing, the U.S. government proposed an addition to the plan to address its concerns.

Part of the proposed addition states that nothing in the plan shall prevent the government from "bringing any claim, suit, action, or other proceedings" against any party or person involved in the reorganized company for violating government laws and regulations.

Pilgrim's Pride filed for bankruptcy protection in December 2008, and has since filed a reorganization plan and has said it expects to exit bankruptcy by the end of this year.

Part of its reorganization plan includes selling a 64 percent stake of the company to Brazilian meat producer JBS SA (JBSS3.SA). (Reporting byBob Burgdorfer) (([e-mail] ; [phone]; Reuters Messaging: [e-mail])) ((For help: Click "Contact Us" in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: [e-mail]; +1 646-223-