CINCINNATI, Ohio, Oct. 29 -- Pierre Foods, Inc. (the "Company" or "Pierre") today announced that the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") approved the Disclosure Statement filed in connection with the Company's proposed Plan of Reorganization (the "Plan") and authorized Pierre to begin soliciting votes on the Plan. Pierre's confirmation hearing, at which the Bankruptcy Court will consider approval of the Plan, has been scheduled for December 10, 2008 at 9:30 am Eastern Time.
As previously announced on September 30, 2008, the Plan is supported by funds managed by Oaktree Capital Management L.P. (collectively, "Oaktree"), the Company's single largest creditor, and Pierre's Official Committee of Unsecured Creditors. Oaktree supplied the Company's debtor-in-possession (DIP) credit facility, and upon confirmation of the Plan, funds managed by Oaktree will become the majority owner of Pierre.
The Company stated, "We are pleased that the Court has authorized the solicitation of votes on the consensual Plan of Reorganization. Everyone at Pierre can be proud of what has been accomplished in a very short amount of time. Pierre is poised to emerge from Chapter 11 as a stronger Company, with a solid balance sheet, that is well prepared to operate throughout the current economic cycle and beyond. The Company is excited about its new sponsorship with Oaktree and appreciates the unwavering dedication and loyalty shown by its employees, customers and vendors throughout the restructuring process."
Pierre will shortly begin the process of soliciting votes for the Plan from eligible claim holders. The Company expects to emerge from Chapter 11 shortly after the December 10 confirmation hearing. At emergence, Pierre's consolidated debt will be approximately $141 million, as compared to approximately $367 million of debt at the time of its Chapter 11 filing.
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.