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Court approves Pilgrim's reorganization plan

Court approves Pilgrim's reorganization plan

POSTED: Thursday, December 10, 2009 - 11:31am

UPDATED: Wednesday, March 17, 2010 - 11:06am

PITTSBURG, Texas (AP) - Chicken producer Pilgrim's Pride Corp.
says a court has approved its reorganization plan and it soon can
emerge from bankruptcy court protection.

The company filed for Chapter 11 protection last year facing
high debt and feed costs.

The U.S. Bankruptcy Court in the Northern District of Texas
approved the reorganization plan Thursday.

The plan includes selling a majority stake worth $800 million to
Brazilian beef giant JBS. The transaction includes paying off
Pilgrim's Pride's creditors in full and distributing new shares to
current holders.

The deal is unusual for a company in bankruptcy protection
because typically creditors aren't repaid. The entire deal is
valued at $2.8 billion.

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