Arkansas receives $75M in government poultry loans

The U.S. Senate approved $75M in emergency loans to Arkansas poultry producers as part of the American Workers, State and Business Relief Act, according to the Arkansas News Bureau.
Sen. Blanche Lincoln, D-Ark., who heads the Senate Agriculture Committee, said the relief could boost a “hurting” state industry affected by the bankruptcy of Pilgrim’s Pride.

Pilgrim's Pride reports $33.6M Q1 profit

Pilgrim's Pride Corp. has reported a profit of $33.6M on $1.6B in revenue for its first fiscal-year quarter ending December 27, 2009, a dramatic change from the same period a year earlier, when it lost $228.8M.
Shares were up $0.44, according to Reuters news agency. Pilgrim’s Pride recently escaped bankruptcy by selling a majority stake in the company to international meat conglomerate JBS SA.

Podcast: Turnaround at Pilgrim’s Pride

Winston Mar, managing director at CRG Partners, talks with Gary Thornton about the turnaround at poultry producer, Pilgrim’s Pride and its emergence from bankruptcy in this podcast on WATT Radio. The interview occurred Dec. 29, 2009, the day after Pilgrim’s Pride emerged from bankruptcy and the day on which trading of its stock resumed on the New York Stock Exchange.
Check out other broadcasts on WATT Radio and iTunes.

Bankruptcy court approves Pilgrim's Pride reorganization plan

A federal bankruptcy court in Texas has approved the joint reorganization plan of Pilgrim's Pride Corporation and six of its subsidiaries. This paves the way for Pilgrim’s Pride and the subsidiaries to emerge from bankruptcy before the end of December, according to company representatives.
Under terms of the joint plan of reorganization, the poultry processor has entered into an agreement to sell 64% of the reorganized company’s new common stock to JBS USA for $800 million in cash. The completion of the transaction is subject to regulatory approval and certain closing conditions, including the closing of an exit facility for senior secured financing in an aggregate principal amount of up to $1.75 billion.

Pilgrim's Pride files reorganization plan with US Bankruptcy Court

Pilgrim's Pride and six of its subsidiaries (debtors and debtors in possession) have officially filed a joint plan of reorganization and disclosure statement under Chapter 11 of the Bankruptcy Code.
As previously reported, Pilgrim's Pride and JBS have agreed to a transaction representing an enterprise value of approximately $2.8 billion, where Pilgrim's will sell 64% of its common stock to JBS for $800 million in cash.
The disclosure statement hearing is scheduled for Oct. 20, 2009, before the Bankruptcy Court. If the Bankruptcy Court determines the proposed disclosure statement provides adequate information to vote on the plan, then the statement and plan, along with the appropriate ballots, will be sent to shareholders to vote on the plan. Since the proposed plan of reorganization represents a 100% plan, with creditors being repaid in full, shareholders represent the only impaired class and will be the only group entitled to vote on the plan of reorganization.
Proceeds from the sale of the new common stock of the reorganized Pilgrim's Pride to JBS will be used to fund cash distributions to allowed claims under the plan. Under the terms of the plan, all creditors of the debtors holding allowed claims will be paid in full. All existing Pilgrim's Pride common stock will be cancelled and existing stockholders will receive the same number of new common stock shares, representing 36% of the reorganized Pilgrim's Pride in aggregate. The plan also calls for an exit facility for senior secured financing in an aggregate principal amount of at least $1.65 billion.
Read about how JBS will impact the U.S. poultry industry.
Read the JBS/Pilgrim's news story with commentary from Paul Aho.
Read the original buyout announcement.

JBS purchases Pilgrim's Pride

In its pending Chapter 11 case, Pilgrim's Pride announced JBS will purchase 64% of the company's stock for $800 million in cash.
Proceeds from the sale of the new common stock of the reorganized Pilgrim's Pride to JBS will be used to fund cash distributions to allowed claims under the plan. Under the terms of the plan, all creditors of the debtors named in the case will be paid in full. All existing Pilgrim's Pride common stock will be cancelled and existing stockholders will receive the same number of new common stock shares representing 36% of the reorganized Pilgrim's Pride in aggregate.
The plan also calls for an exit facility for senior secured financing in an aggregate principal amount of $1.75 billion to be provided by a group of lenders arranged by Joint Lead Arrangers CoBank, ACB and Rabobank.
Pilgrim's Pride said it expects the plan to be confirmed by the Bankruptcy Court in time for debtors to emerge from bankruptcy before the end of December.
"Over the past 10 months, we have fundamentally restructured Pilgrim's Pride as a market-driven company clearly focused on delivering the best service, selection and value to our customers as efficiently as possible," said Don Jackson, president and chief executive officer.
The plan and the proposed disclosure statement have yet to be approved by the Bankruptcy Court and are subject to further negotiations with stakeholders.
Pilgrim's filed voluntary Chapter 11 Dec. 1, 2008, and its operations in Mexico and certain operations in the U.S. were not included in the filing and continue to operate as usual.

Turnaround for Pilgrim's Pride

According to a Monday, August 3 MarketWatch news report, Pilgrim's Pride reported posted a profit of $53.2 million, or 72 cents/share, for the quarter that ended June 27.
Pilgrim's Pride, which filed for bankruptcy in December 2008 and is reorganizing under Chapter 11 bankruptcy law, lost $52.7 million, or 75 cents/share, in the year-earlier quarter. Sales fell to $1.77 billion from $2.2 billion. Over the past nine months, Pilgrim's Pride has closed seven processing complexes, two distribution centers, and cut production.
Pilgrim's Pride is one of the largest U.S. chicken producers, along with Tyson Foods and Sanderson Farms.

Pilgrim's Pride to close two processing plants

Pilgrim's Pride Corp. announced the closing of two of its chicken processing plants within 60-75 days. The plants to be idled are in Athens, Ala. and Athens, Ga.
Production will be consolidated in nearby Pilgrim's plants, bringing them to capacity. The company anticipates offering new positions to many employees from the closing facilities.
The hatchery in Moulton, Ala., the feed mill in Falkville, Ala., and other live production operations associated with the Athens, Ala. plant will continue to operate.
The company filed for voluntary bankruptcy petition on December 1, 2008, and has been working to bring its facilities to full capacity since then.

Foster Farms opens former Pilgrim's plant

Governor Bobby Jindal and Foster Farms CEO Ron Foster received a heroes' welcome Saturday, July 11, as north Louisiana celebrated a ribbon-cutting ceremony to mark the opening of the new Foster Farms chicken plant in Farmerville, La.
With the help of the state, Foster Farms purchased the old Pilgrim's Pride facility in March, saving thousands of jobs and avoiding the loss of more than $100 million in state and local tax revenues over the next 10 years.
Foster Farms said that at full capacity, the plant will employ at least 1,100 workers with a corresponding payroll of more than $24 million. Foster Farms has begun extending contracts to Louisiana growers in advance of the plant's opening.

Pilgrim's on track for bankruptcy exit

Pilgrim's Pride reported an operating profit of $16.74 million in May after one of $13.92 million in April. The company is not planning any further cuts in production after reducing output 9-10% earlier this year, a Reuters report said.
Pilgrim's Pride is still on track for exiting bankruptcy later this year, according to CEO Don Jackson.

Pilgrim’s signs agreement to sell Farmerville complex

Pilgrim's Pride Corp. announced that it has signed a definitive agreement to sell its chicken complex in Farmerville, La., to Foster Farms for $80 million, subject to a price adjustment for associated inventory and other reimbursements.
Completion of the transaction is contingent upon customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott Rodino Improvements Act and approval by the U.S. Bankruptcy Court. The transaction is also subject to Foster Farms' receipt of $40 million from the state of Louisiana in order to fund a portion of the purchase price. The sale is expected to be completed within 30 days.
The Louisiana legislature voted on May 7, 2009, to approve the use of government funds to subsidize the purchase of the Farmerville complex by Foster. The agreement between Foster and the state call for Louisiana to provide $40 million toward the purchase of the complex and $10 million, which will be matched by Foster, for capital improvements.
The U.S. Bankruptcy Court has approved procedures for the sale of the Farmerville complex assets. The sale will be completed via an auction in accordance with Section 363 of the U.S. Bankruptcy Code. The Court set 12 p.m. CST, May 15, 2009, as the deadline for the submission of qualified bid packages and scheduled an auction for 10 a.m., May 18. At that time, the company will sell its assets to Foster Farms or another qualified bidder, if such bidder makes the highest and best offer for the assets. A hearing to approve the sale has been scheduled for 10:30 a.m., May 19.
The Farmerville complex includes a processing facility, a cook plant, two hatcheries, a feed mill, a protein conversion plant and any associated inventory.

Growers lose court battle with Pilgrim's

Nine broiler growers lost their fight in federal bankruptcy court to keep their contracts with Pilgrim’s Pride processing plant in Live Oak, Fla.
The court said the growers did not prove that their contracts were cancelled in retaliation for complaints of discrimination or that the decision discriminated against Hispanic growers.
Pilgrim's Pride severed contracts with 26 of 158 growers in the Live Oak area as part of Chapter 11 bankruptcy proceedings that also saw layoffs of 505 of the processing plant's 1,400 workers.
The company cancelled the contracts of the 26 least efficient growers based on cost per pound over a year's worth of flocks.
The ruling did leave open the possibility of the growers recouping their losses in bankruptcy proceedings as long as the company remains solvent.

Pilgrim’s Pride gains time for reorganization

Pilgrim's Pride Corp., operating under Chapter 11 bankruptcy protection, received an extension for exclusively filing their reorganization plan the company said today.
The U.S. bankruptcy court in Fort Worth, Texas extended Pilgrim’s deadline to Sept. 30. The previous deadline was March 30.
In February, Watt PoultryUSA ranked the Pittsburg, Texas-based company as the number one poultry producer during the previous 12 months, reporting a weekly ready-to-cook volume of 159.46 million pounds of chicken, a drop of 2% from the 162.78 million pounds RTC per week reported in 2008.
High feed costs, low chicken prices and large debt obligations lead the company to file for bankruptcy protection on Dec. 1, 2008.
Earlier this year Pilgrim’s said it hoped its actions of idling plants, reducing the workforce and streamlining operations would return it to profitability and allow it to exit bankruptcy by the end of 2009.