Ex-Pilgrim's Pride C.E.O., C.O.O. contracts delayed
February 05, 2009
by MEAT&POULTRY Staff
FORT WORTH, TEXAS – A court ruling by a bankruptcy judge in Fort Worth on consulting agreements with two former executives of Pilgrim's Pride was delayed again on Feb. 4, according to The Associated Press. Court-appointed trustee William Neary and Pilgrim’s Pride were asked by U.S. Bankruptcy Judge Dennis Lynn to submit briefs by Feb. 12.
At issue are agreements with former Pilgrim's Pride president and C.E.O. Clint Rivers and ex-chief operating officer Robert Wright. Mr. Neary objected to them on Jan. 23 and said the deals seem to violate legal restrictions on severance pay during bankruptcy.
After hearing testimony, the judge said Pilgrim's Pride was proposing to buy non-compete agreements -- and he questioned the appropriateness of such proposals. Pilgrim's Pride wants Mr. Rivers to consult for $83,500 a month for four months. Mr. Wright would receive $50,000 a month for three months.
Late last year, Pilgrim’s Pride Corp. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas.
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