I am pleased to report that after a 13-month restructuring, Pilgrim’s Pride and six of our subsidiaries today emerged from chapter 11 bankruptcy protection.
Under the terms of the confirmed plan, all of the shares of the company’s common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company. The reorganized company issued 64% of its common stock to JBS USA Holdings, Inc. in exchange for $800 million in cash. The remaining 36% of the common stock of the reorganized company was issued to stockholders existing immediately prior to the effective date. Proceeds from the sale of the common stock of reorganized Pilgrim’s Pride to JBS are being used to fund cash distributions to unsecured creditors.
The reorganized company’s common stock will begin trading December 29 on the New York Stock Exchange under the symbol “PPC.”
Pilgrim’s Pride today begins a new chapter as a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible. Over the past 13 months, we have made significant improvements across our organization aimed at positioning Pilgrim’s Pride to respond quickly to the needs of the market. Those changes have touched every aspect of our business, from supply chain and operations to sales and marketing.
Thanks to the commitment and support of our 41,000 employees and 4,500 growers, Pilgrim’s Pride today is a stronger, leaner company with a growing customer base, improved capital structure and a culture built on results and accountability. We are very excited about the strategic opportunities available with JBS as our majority shareholder and we look forward to the future.
Sincerely,
Don Jackson
President and Chief Executive Officer