Pilgrim's Pride gets $365 million in bankruptcy funds
NEW YORK (Reuters) - Pilgrim's Pride Corp (PGPDQ.PK), which filed for bankruptcy on Monday, said on Wednesday that it had received interim court approval to access $365 million of $450 million in debtor-in-possession financing.
The company, which is the largest U.S. chicken company, said the financing will allow it to continue operating , pay employee wages and make payments to vendors. It also received approval to pay pre-bankruptcy employee wages, health benefits and other employee obligations.
It can also honor its current rebate and prepayment programs, coupon programs, product replacement and customer refunds, Pilgrim's Pride said. Its stock is now trading on the pink sheets and last changed hands at 14.5 cents.
It filed for bankruptcy after struggling during the past year with high feed costs and low meat prices amid a slowing economy.
A final court hearing on the debtor-in-possession, or DIP financing, is set for December 17. The Bank of Montreal is the lead DIP agent, according to court documents.
(Reporting by Caroline Humer; Editing by Derek Caney)
