KCBD, NewsChannel 11 Lubbock |Pilgrim's Pride gets FTC, Justice Dept. approval
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Associated Press - October 15, 2009 7:15 AM ET
PITTSBURG, Texas (AP) - Pilgrim's Pride Corp. says the Federal Trade Commission and Department of Justice have cleared the way for its deal with Brazilian beef producer JBS SA, which would help pull the chicken producer out of bankruptcy.
Last month, JBS said it would buy a majority stake in Pilgrim's Pride for $800 million, in a transaction that would include paying off Pilgrim's Pride's creditors in full and distributing new stock to current shareholders - something unusual for a company in bankruptcy protection.
Pilgrim's Pride and 6 of it subsidiaries filed a reorganization plan with the U.S. Bankruptcy Court for the Northern District of Texas in September.
The company anticipates its reorganization plan will be approved by the bankruptcy court so it can exit bankruptcy protection by the end of the year.
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