Pilgrim’s Pride has won an extra six months to devise a reorganisation plan, the US poultry group has revealed.
A US bankruptcy court has allowed Pilgrim’s Pride to work on the plan until 30 September. The previous deadline for the ailing firm, which entered Chapter 11 in December, was 30 March.
“It is not at all unusual in Chapter 11 cases for the Debtor to request extensions to file a plan of reorganization,” a Pilgrim’s Pride spokesman told just-food. “In fact, in yesterday’s (24 March) hearing the judge commented that he would have been surprised if we had not asked for an extension.”
Last week, Pilgrim’s Pride said it would sell a chicken complex in Louisiana to rival Foster Farms for US$80m.
The sale was the latest stage in a wide-ranging restructuring process at Pilgrim’s Pride, which fell into bankruptcy after incurring massive debts.
Last month, the company said it would idle three of its 32 US chicken processing plants by mid-May to save costs.