Cincinnati, Ohio, Aug. 13 - Pierre Foods, Inc. (the "Company" or "Pierre") today announced that the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") granted final approval of the Company's $35 million debtor-in-possession (DIP) credit facility. The facility is being provided by certain funds managed by Oaktree Capital Management L.P. The Company previously received interim approval of the DIP credit facility from the Bankruptcy Court on July 16, 2008.
The DIP financing and cash generated from operations will be used to continue to pay vendors and employees, as well as to provide operational and financial stability as Pierre proceeds with its financial restructuring. The Company is currently in compliance with all of the terms and conditions of the DIP credit agreement.
"We are pleased to have received final Court approval of our DIP credit facility," said Norbert Woodhams, Chief Executive Officer of Pierre Foods. "Our DIP financing allows us to continue providing uninterrupted service for our customers while honoring our obligations to vendors and suppliers. We believe that with final approval of our DIP financing we have the necessary capital to continue to run our operations while we pursue discussions with our creditors and focus on our emergence from bankruptcy."
Mr. Woodhams concluded, "We thank all of our loyal customers, committed vendors and dedicated employees for their ongoing support as we work through our financial restructuring."
As previously announced, the Company and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on July 15, 2008. The Pierre Foods, Inc. case has been assigned case number 08-11480.
About Pierre Foods, Inc.
Pierre has enjoyed a dynamic history dating back over 60 years to 1946. The company's foundation is built on its committed employees, key customer relationships, trust, and providing the best products available. Today Pierre Foods is a leading manufacturer, marketer and distributor of high-quality, differentiated food solutions, focusing on pre-cooked and ready-to-cook protein products, compartmentalized meals, and hand-held convenience sandwiches. Pierre is headquartered in Cincinnati, Ohio.