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Bankruptcy court OKs Pilgrim’s Pride plan
Pilgrim’s Pride has just issued this press release:
Pilgrim’s Pride Corporation, together with certain of its wholly owned subsidiaries (collectively, the “Company”), today announced the approval of “first day” motions by the United States Bankruptcy Court for the Northern District of Texas (the “Court”). The Company received interim approval to access $365 million of its $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent (the “DIP financing”). The DIP financing, combined with cash generated from ongoing operations, will allow the Company to satisfy its customary business obligations, including the timely payment of employee wages and payments to vendors. The final DIP hearing is scheduled for December 17, 2008. The Company also announced that it received Court approval to, among other things, pay pre-petition employee wages, health benefits, and other employee obligations during its restructuring under Chapter 11. Additionally, the Company is authorized to continue to honor all of its current customer policies without interruption, including marketing development, rebate and prepayment programs, coupon programs, product replacement and customer refunds.
You can find the entire press release by clicking here.
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