Sumner GA, Located in southwest GA, | As found in Watts Poultry.
The largest chicken producing company in the world, Pilgrim’s Pride Corporation (PPC), filed for Chapter 11 bankruptcy after the last of three credit waivers expired at high noon on the first of December. The company is now a trustee to its creditors and subject to the oversight and jurisdiction of the court. The shareholders no longer own the company but rather are creditors last in line behind all other creditors. Everyone is now a creditor – plaintiffs, employees, banks, growers and shareholders. Creditors are entitled to be heard by the court, which is responsible for determining whether or not the plan of reorganization complies with the bankruptcy law and provides fair treatment of all parties. There is an automatic stay which requires all creditors to cease collection attempts.
There is every expectation that PPC as a company will survive the process. However, what will happen to the company during reorganization is now a matter of speculation. It is possible that some plants may close. Even before Chapter 11, PPC had been closing some plants and consolidating operations. That process may now accelerate. It is also possible that some plants could be sold. In Chapter 11, the court requires a reorganization plan within 120 days.
Go to http://www.wattpoultry.com/PoultryUSA/News.aspx?id=28672 for the whole article. |
Pilgrim Pride Special Report
