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Pilgrim's Receives Approval for DIP Financing

by 5m Editor
31 December 2008, at 6:18am

US - Pilgrim's Pride Corporation has received final court approval of access to $450 million in Debtor-In-Possession (DIP) financing.

Pilgrim's Pride Corporation has announced that it 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. Earlier this month, 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 normalized basis consistent with its pre-bankruptcy practices.

As previously announced, the Company filed voluntary Chapter 11 petitions on 1 December 2008. The 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.