Pilgrim’s Pride back to real life
Pilgrim’s Pride Corporation announced that the company and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection after a 13-month restructuring.
Under the terms of the confirmed plan, all of the shares of the company’s common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company.
The reorganized company issued 64% of its common stock to JBS USA Holdings, Inc. in exchange for $800 million in cash.
The remaining 36% of the common stock of the reorganized company was issued to stockholders existing immediately prior to the effective date.
Proceeds from the sale of the common stock of reorganized Pilgrim’s Pride to JBS are being used to fund cash distributions to unsecured creditors.
The reorganized company’s common stock will begin trading on the New York Stock Exchange under the symbol “PPC.”
“Pilgrim’s Pride today begins a new chapter as a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible,” said Don Jackson, president and chief executive officer.
“Over the past 13 months, we have made significant improvements across our organization aimed at positioning Pilgrim’s Pride to respond quickly to the needs of the market. Those changes have touched every aspect of our business, from supply chain and operations to sales and marketing.
[…] “We are very excited about the strategic opportunities available with JBS as our majority shareholder and we look forward to generating sustained, profitable growth in the future.”
Corporation employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company’s primary distribution is through retailers and foodservice distributors.