The US bankruptcy court has approved an agreement that will see failed chicken group Pilgrim’s Pride hire its former CEO and COO as consultants.
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According to a filing with the US Securities and Exchange Commission, former chief executive Clint Rivers and former chief operating officer Robert Wright will be retained in an advisory capacity.
Rivers will advise the company for four months, at US$83,000 per month, while Wright will offer consultation for three months, at $50,000 a month.
Rivers and Wright resigned from Pilgrim’s last December, a few weeks after the chicken producer filed for Chapter 11 bankruptcy protection, citing volatile feed costs and high debt.
In January, the company’s bankruptcy trustees expressed a concern that consultancy payments to Rivers and Wright may violate bankruptcy rules.
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By GlobalDataIn a court filing, Pilgrim’s bankruptcy trustee William Neary claimed: “the facts and circumstances of this case do not justify payments of such large amounts of money”.
However, the move has now received court approval.
