Pilgrim’s Pride gets financing approval

Pilgrim’s Pride Corporation has received final approval from the United States Bankruptcy Court for the Northern District of Texas of its $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. In December 2008, the company had received interim approval to access up to $365 million of its $450 million debtor-in-possession financing facility pending a final hearing.

The DIP financing facility, combined with cash flows generated from ongoing operations, allows the company to continue its business operations on a normal basis consistent with its pre-bankruptcy practices.

Pilgrim’s filed voluntary Chapter 11 petitions December 1, 2008. Chapter 11 cases are being jointly administered under case number 08-45664. The company’s operations in Mexico and certain operations in the United States are not included in the filing and continue to operate as usual outside of the Chapter 11 process.

The firm employs about 48,000 people and operates 35 chicken processing plants and 11 prepared-foods facilities.