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News on acouple of bankrupt meat processing plants

Some news regarding a couple of bankrupt meat processing plants. Pilgrim’s Pride has signed a definitive agreement tosell its Farmerville, Louisiana chicken operation to Foster Farms of California for $80 million. The plant shut down on Friday. The deal is subject to Foster Farms getting $40 million from the State of Louisiana to help fund the purchase plus another $10 million for site improvements. TheLouisiana State Legislature approved the funding and the governor is expected to sign it. The whole deal has to be approved by the U.S. bankruptcy court; a hearing is scheduled for May 19th. If all goes according to plan, the sale will be completed within 30 days and Fosters will start the plantup by mid-July.

Meanwhile a major creditor to Agriprocessors, First Bank Business Capital of St. Louis has sold one of its largest loans to the company, a $10 million line of credit to an undisclosed buyer for an undisclosed amount. This could get the delayed sale of thebankrupt Agriprocessors plant at Postville, Iowa back on track. The plant has been running at a fraction of capacity ever since it was raided by immigration officials a year ago.