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December 1, 2008

Pilgrim's Pride says 'business as usual' despite bankruptcy filing

From Staff and Wire Reports

It should be “business as usual” for the 427 employees of the Pilgrim’s Pride plant in Dalton despite the company’s filing for Chapter 11 bankruptcy protection on Monday, a company spokeswoman said.

“There are no plans to change anything at the plants at this time,” said Meaghan Repko. “It’s business as usual and we’re using the court supervised process to restructure the company’s debt.”

Another company spokesman, Ray Atkinson, said Pilgrim’s Pride is reorganizing and not liquidating its assets.

The Pittsburg, Texas-based company sought the bankruptcy protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas. The company has been saddled by debt due to the acquisition of its rival Gold Kist Inc. and has had to extend its temporary credit line three times since September. It’s also hurting due to volatile feed prices and an oversupply of meat on the market, which keeps prices down.

In a statement on the company’s Web site (www.pilgrimspride.com), Clint Rivers, president and chief executive officer, said, “First and foremost, this does not mean we are going out of business. In fact, I’d like to emphasize that we expect it will be ‘business as usual’ as we work through this restructuring process. We remain steadfast in our commitment to rebuilding our business and maintaining our core values. Our dedication to our customers, employees and business partners will not change.”

Pilgrim’s Pride is seeking approval to enter into a $450 million debtor-in-possession financing arrangement.

“If approved by the court, the ... financing will provide an immediate source of funds to the company, enabling it to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations,” a press release from the company stated.

More information about the restructuring is available at the company’s Web site. For access to court documents and other general information about the Chapter 11 cases, visit www.kccllc.net/pilgrimspride.

Pilgrim’s Pride Corp. employs approximately 48,000 people and operates 35 chicken processing plants and 11 prepared-foods facilities.

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