Troubled US poultry group Pilgrim’s Pride has secured final approval to gain access to some US$450m in funding.
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The company, which last month filed for Chapter 11 bankruptcy, said on Tuesday (30 December) that the US Bankruptcy Court for the Northern District of Texas had given the green light to the funding.
At the start of December, Pilgrim’s Pride had won interim approval to get its hands on $365m of the funding, which has been arranged by the Bank of Montreal as lead agent.
Pilgrim’s Pride said on Tuesday that the financing would help the company “continue its business operations on a normalised basis consistent with its pre-bankruptcy practices”.
Pilgrim’s Pride filed for Chapter 11 on 1 December after seeing its profits hit by soaring feed costs and weak poultry prices. The company’s high level of indebtedness, primarily the result of its takeover of Gold Kist last year, also proved problematic amid turmoil in the credit markets.
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By GlobalDataOn 17 December, Pilgrim’s Pride announced that CEO Clint Rivers and COO Robert Wright had both resigned as part of the company’s reorganisation process.
In replacement, Pilgrim’s Pride appointed Don Jackson as president and CEO, subject to approval by the US Bankruptcy Court for the Northern District of Texas.
The board has also appointed Lonnie Ken Pilgrim, its current chairman, as interim president until Jackson’s employment is approved.
