Pittsburg, Texas-based Pilgrim's Pride Corporation announced that it has received approval by the United States Bankruptcy Court for the Northern District of Texas to proceed with "first day" motions and receive $365 million of its debtor-in-possession financing.

The processor originally lined up $450 million DIP financing with the Bank of Montreal as a main agent. The $365 million of that amount approved by the court on an interim basis will be used to fulfill Pilgrim's business obligations, such as paying wages and vendors. Pilgrim's final DIP hearing will be held Dec. 17, 2008.

"Throughout this process, we will continue to operate our business without interruption, including paying employee wages and purchasing the goods and services necessary to serve our customers," said President and CEO Clint Rivers.

Pilgrim's currently owes unsecured trade debt to creditors totaling more than $47.9 million, according to The Morning News in Northwest Arkansas. Two poultry companies in Arkansas are among the creditors owed, including Tyson subsidiary Cobb-Vantress, which is owed $1.21 million, and Fort Smith, Ark.-based O.K. Foods Inc., which is owed $465,102.

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