US: Pierre submits reorganisation plan

By just-food.com | 30 September 2008

Pierre Foods took a "significant step forward" in its effort to emerge from Chapter 11 bankruptcy when it filed its reorganisation plan with the US bankruptcy court.

The company filed a consensual Joint Plan of Reorganisation and Disclosure Statement supported by funds managed by Oaktree Capital Management, the company's single largest creditor, and Pierre's Official Committee of Unsecured Creditors.

Pierre will ask the bankruptcy court to confirm the plan in early December and hopes to emerge from bankruptcy shortly thereafter.

Oaktree supplied the group's debtor-in-possession credit facility, and upon confirmation of the plan, will become the majority owner of Pierre.

"We are very pleased to have Oaktree as our new financial sponsor and believe that Oaktree's continuing commitment to Pierre demonstrates its deep belief in the fundamental strengths and the inherent value of our company," said Norbert Woodhams, CEO of Pierre Foods.

Sectors: Baby food, Chilled foods, Meat & poultry, Seafood

Companies: Pierre Foods