CHICAGO (Reuters) - Pilgrim's Pride Corp's final debtor in possession financing was approved on Tuesday, though it may be amended to address some concerns.
Pilgrim's Pride, the largest U.S. chicken company, filed for Chapter 11 bankruptcy protection in early December after struggling with high feed costs and low meat prices.
It already received interim court approval to access $365 million of $450 million in DIP financing on December 3. The Bank of Montreal is the lead DIP agent.
During a hearing on Tuesday, a lawyer representing Pilgrim's Pride said one response to the DIP financing was filed under seal.
Judge D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas told the court the objection contained nothing "stunning."
Pilgrim's Pride's lawyers and other principal parties involved the bankruptcy proceedings then met with Lynn in chambers to discuss the matter.
Afterward, a lawyer for Pilgrim's Pride said objections to the proposed form of financing were resolved and that a revised form of order would be submitted later on Tuesday.
"I'm going to approve the financing on the terms proposed," Lynn said. "There may be a later amendment to address concerns expressed in chambers."
Other motions were also granted, including the retention of Lazard Freres & Co LLC as Pilgrim's Pride's investment banker.
Shares of Pilgrim's Pride were up 1 cent at 60 cents per share. Last December, Pilgrim's Pride traded near $29.
The case is Pilgrim's Pride Corporation, et al., U.S. Bankruptcy Court for the Northern District of Texas, No. 08-45664.
(Reporting by Jessica Wohl; Editing by Matthew Lewis and Brian Moss)
