Pilgrim’s Pride and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection after a 13-month restructuring.
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As part of the reorganisation, Pilgrim’s Pride entered into a US$1.75bn exit credit facility with several financial institutions.
The exit deal also includes the $800m sale of a 64% stake in the company to Brazilian beef giant JBS.
“Pilgrim’s Pride today begins a new chapter as a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible,” said Don Jackson, president and CEO. “Over the past 13 months, we have made significant improvements across our organization aimed at positioning Pilgrim’s Pride to respond quickly to the needs of the market.”
He added: “We are very excited about the strategic opportunities available with JBS as our majority shareholder and we look forward to generating sustained, profitable growth in the future.”
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By GlobalDataUnder the terms of the plan, all of the company’s oustanding shares immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganised company.
Proceeds from the sale of the common stock of the reorganized Pilgrim’s Pride to JBS are being used to fund cash distributions to unsecured creditors, the company said.
The reorganized company’s common stock has begun trading on the New York Stock Exchange under the symbol “PPC”.
The troubled company has also reached an agreement with the US government to pay $4.5m to settle an investigation into identity theft and the employment of individuals not authorized to work in the US.
The agreement marks the end of a two-year government investigation at five Pilgrim’s Pride plants. The poultry producer said it will pay the fine over the next three years.
