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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, Pilgrim's Pride 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.