Slumping meat stocks forcing PETA to buy more shares

[OldDog/NewTricks]

Slumping meat stocks forcing PETA to buy more shares

By Janie Gabbett on 12/5/2008


As shares of publicly traded meat companies slide with the rest of the market, People for the Ethical Treatment of Animals has had to buy more shares to ensure its ability to continue its shareholder resolution campaign.

PETA has long purchased tiny holdings in major meat processors in order to gain access to shareholder meetings and offer shareholder resolutions to generate publicity and further the organization's goals.

In order to submit a resolution, PETA must have owned at least $2,000 worth of stock in the company for one year prior to the submission date. If the value dips below that figure at any point during the year, PETA is prohibited from submitting a resolution per federal regulations.

"To remain eligible to submit the resolutions in a depressed market, PETA has had to revamp its stock-purchasing strategy by buying additional shares," the group said in a news release.

Among the companies PETA has recently increased its stake in are: Pilgrim's Pride, Tyson Foods, Sonic Corporation, O'Charley's Inc., Domino's Pizza, Inc., California Pizza Kitchen and Ingles Markets.

 

[MsSage]

Wonder how much this stock is worth now LOL

Associated Press
Court approves Pilgrim's Pride debtor financing
Associated Press, 12.03.08, 09:22 AM EST

Poultry processor Pilgrim's Pride Corp., which filed for bankruptcy protection earlier this week, said Wednesday a Texas court approved an agreement allowing the company to access $365 million in financing.

The company said the U.S. Bankruptcy Court for the Northern District of Texas granted interim approval for Pilgrim's Pride (nyse: PPC - news - people ) to access the financing, which is part of the company's $450 million debtor-in-possession financing facility.

Debtor-in-possession financing allows a company to continue operating during bankruptcy proceedings. The financing was arranged by Bank of Montreal (nyse: BMO - news - people ).

Pilgrim's Pride said the financing, combined with cash from ongoing operations, will allow it to meet its business obligations like paying wages and making payments to vendors.

The company also said it received court approval to pay employee wages and health benefits that it owed before filing for bankruptcy on Monday and will continue to honor all of its current customer policies, including coupon programs, product replacement and customer refunds.

The company's final debtor-in-possession hearing is scheduled for Dec. 17.

Pilgrim's Pride filed for Chapter 11 bankruptcy protection on Monday. The company had been unable to fulfill its financial obligations and had a big interest payment due this week.
The company has been saddled with a large debt load from its $1.3 billion acquisition of rival Gold Kist Inc. in 2007. The processor has also been hit by an oversupply of chicken and high animal feed costs.