California poultry company files for Chapter 11 bankruptcy

California-based poultry company Zacky Farms LLC filed for Chapter 11 bankruptcy October 8 with the United States Bankruptcy Court, but said normal operations and customer service will continue without disruption.
Due to historically high corn and soybean meal prices, Zacky incurred significant operating losses that depleted its liquidity and working capital position.
Zacky has not set a target date for emergence from Chapter 11, but the company has employed financial advisers to explore strategic alternatives. 

Cagle's files for Chapter 11 bankruptcy

Cagle's Inc. and its wholly-owned subsidiary Cagle's Farms Inc. have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Cagle's filed the petitions in the United States Bankruptcy Court for the Northern District of Georgia in Atlanta, Ga.
According to the company, normal operations and customer service will continue without disruption, including sales, order processing and delivery. In connection with its Chapter 11 filing, Cagle's also announced that it anticipates receiving court approval for a debtor-in-possession financing facility from AgSouth Farm Credit, ACA. Over the past few years, said Cagle's, the poultry industry has been under severe stress due to historically high corn and soybean meal prices coupled with sagging chicken prices caused by an oversupply of broilers. As a result, Cagle's has incurred significant operating losses that have depleted its liquidity and working capital position.
"After careful consideration we concluded that a Chapter 11 restructuring represents the best long-term solution for Cagle's Inc. and Cagle's Farms Inc.," said J. Douglas Cagle, chairman, president and CEO. "It is our goal to reach an agreement with our creditors in a quick and efficient manner, allowing us to restructure our debt with minimal disruption to our operations."
Cagle's has not set a target date for emergence from Chapter 11. 

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.