Pierre Foods has asked a judge to approve a reorganization plan that will restructure some debt, allow it to be mostly taken over by funds of Oaktree Capital Management LP and emerge from bankruptcy near the end of the year.
The company, which makes value-added meat, poultry and bakery products for the foodservice market, filed for Chapter 11 bankruptcy protection in July, citing rising raw material costs.
The reorganization plan proposes converting some debt into equity and cancelling $125 million of senior subordinated notes.
Oaktree supplied the company's debtor-in-possession credit facility, and would, upon approval of the plan, become the majority owner of Pierre.