The plan is supported by funds managed by Oaktree Capital Management L.P., the company's single largest creditor, and Pierre's official committee of unsecured creditors. Pierre will ask the bankruptcy court to confirm the plan in early December 2008 and hopes to emerge from bankruptcy shortly thereafter. 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 filing of this consensual plan represents a significant step forward in our efforts to emerge from chapter 11 as a stronger Company that can operate profitably in this difficult economic environment and beyond," said Norbert Woodhams, chief executive officer of Pierre Foods. "We are very pleased to have Oaktree as our new financial sponsor and believe that Oaktree's continuing commitment to Pierre demonstrates its deep belief in the fundamental strengths and the inherent value of our company."