Pilgrim’s Pride files for Chapter 11
Posted by: Joshuah in Agriculture, tags: Bank Of Montreal, Chapter 11 Bankruptcy Protection, Chicken Feed, Chicken Processing, famine, Gold Kist Inc, Pilgrim’s Pride, Prepared Foods
Pilgrim's Pride
Source: Charlotte Business Journal:
Pilgrim’s Pride Corp., a chicken processor with operations in Union County, has filed for Chapter 11 bankruptcy protection.
The company, based in Pittsburg, Texas, says it does not expect the move to affect its daily operations. A Chapter 11 bankruptcy filing allows companies to protect their assets while they reorganize.
Pligrim’s Pride has been hit hard this year by several factors, including the high cost of ingredients for chicken feed and lower consumer demand for meat.
Earlier this year, the company shut down a facility in Siler City where it had employed more than 800 workers.
“We expect to emerge from this restructuring a stronger, more competitive company that is well-positioned for growth and enhanced profitability,” says Clint Rivers, chief executive. “We are proud of the consistently high quality of our products, our valued customer relationships and the high level of service we provide.”
Pilgrim’s Pride (NYSE:PPC) says it has reached an agreement to obtain $450 million debtor-in-possession financing from a group of lenders led by Bank of Montreal.
Pilgrim’s Pride says it expects to lose $802 million, or $10.83 per share, in the fourth quarter. The company says the latest results will include a $501.4 million charge tied to the impairment of goodwill associated with Pilgrim Pride’s purchase of Gold Kist Inc.
That company lost $33.2 million, or 50 cents per share, in the fourth quarter of 2007.
Pilgrim’s Pride has 48,000 employees. The company operates 35 chicken processing plants and 11 prepared-foods facilities.
Technorati Tags: Famine, Pilgrim’s Pride
Entries (RSS)