One of the largest bankruptcies of the past year—that of Pilgrim’s Pride Corp.—has ensnared several Georgia companies and governments and their legal counsel.
Pilgrim’s Pride has many connections to Georgia. For one, Georgia is one of the biggest poultry-producing states. Additionally, Pilgrim’s Pride in 2007 absorbed Gold Kist, one of Georgia’s biggest chicken companies, in a $1.24 billion acquisition. Pilgrim’s Pride still markets chicken products using the Gold Kist brand.
Pilgrim’s Pride, based in Pittsburg, Texas, filed for Chapter 11 on Dec. 2 in U.S. Bankruptcy Court for the Northern District of Texas in Fort Worth. The largest U.S. poultry company, outpacing Tyson Foods Inc., Pilgrim’s Pride reported $8.5 billion in yearly sales through the end of September, according to the company’s annual report. But Pilgrim’s Pride has been hammered by higher costs for corn, soybeans and other chicken feed. A glut of chicken in the marketplace and decreased consumer demand haven’t helped either.
Pilgrim’s Pride reported more than $2.7 billion in debts, according to its initial bankruptcy petition. Weil, Gotshal & Manges is lead bankruptcy counsel to Pilgrim’s Pride. Andrews Kurth is representing the official committee of unsecured creditors.
Among the Atlanta law firms and Atlanta-based attorneys involved with the bankruptcy case are:
Alston & Bird partner Jason H. Watson and associate Bess M. Parrish, representing Key Equipment Finance Inc., a unit of KeyCorp that provides lease-based financing of office equipment and machinery.
McKenna Long & Aldridge partner Daniel J. Carrigan in Washington, advising Sparks, Md.-based spices maker McCormick & Co.
Jones Day partner Jeff Ellman and associate Robbin Rahman, advising St. Louis corn miller Bunge North America Inc.
Seyfarth Shaw partner Paul Baisier and associate Shuman Sohrn, representing dry ice distributor Tomco2 Equipment Co. of Loganville, Ga.
Thompson, O’Brien, Kemp & Nasuti associate Ted Hight III, representing Norcross packaging manufacturer Rock-Tenn Co.
Wimberly Lawson Steckel Schneider Stine attorneys Jim Wimberly Jr. and James Hughes, advising Don Jackson, who has been designated as the new president and chief executive of Pilgrim’s Pride, pending bankruptcy court approval.
Other Georgia-based creditors are also involved in the case.
Bartholow & Bartholow partner Molly Bartholow in Dallas worked out a deal with Pilgrim’s Pride on behalf of her client, the consolidated city-county government of Athens-Clarke County, Ga. Pilgrim’s Pride owed Athens-Clarke County about $630,000 through Dec. 1, according to a court filing. Details of the two parties’ settlement agreement weren’t disclosed. Athens-Clarke County described itself as providing utility services to Pilgrim’s Pride. Athens-Clarke County provided water, sewer, storm-water and garbage-pickup services to Pilgrim’s Pride at the company’s two poultry processing plants in Athens, according to a document filed by Pilgrim’s Pride.
Andrew F. Emerson of Dallas is representing creditor Southeastern Export Corp., an Atlanta food exporting company owned by Zurab Lezhava. Lezhava is perhaps better known as the owner and restorer of the famous Atlanta mansion on West Paces Ferry Road known as “The Pink Palace.”