Pilgrim's Pride said today (10 December) that the US bankruptcy court for the Northern District of Texas has approved its reorganisation plan - paving the way for the completion of JBS's proposed acquisition of a majority stake in the US poultry group.

The company now expects to exit Chapter 11 bankruptcy protection before the end of December.

"This is a proud day for everyone at Pilgrim's Pride who has worked so hard over the past year to restructure our business," said Don Jackson, president and CEO, after the court hearing.

"The past 12 months have been filled with tremendous challenges and unprecedented opportunities. There have been a lot of tough, painful decisions made about the future of this company, yet our employees have joined together to create a new market-driven organization that is clearly focused on serving our customers."

Pilgrim's Pride has entered into an agreement to sell 64% of the new common stock of the reorganised company to Brazilian meat giant JBS for U$800m in cash.

The completion of the transaction remains subject to the closing of an exit facility for senior secured financing in an aggregate principal amount of up to $1.75bn, certain regulatory approvals and other customary closing conditions.