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Cagle's Files for Chapter 11 Protection

by 5m Editor
21 October 2011, at 9:31am

US - One of Georgia's oldest companies, chicken producer Cagle's Inc., has filed for Chapter 11 bankruptcy protection.

The Atlanta-based company, which has been in business for more than 60 years, said it will attempt to restructure its debt, according to Atlanta Business Chronicle.

The company said in a statement: "Over the past few years, the poultry industry has been under severe stress due to historically high corn and soybean meal prices coupled with sagging chicken prices caused by an oversupply of broilers. As a result, Cagle's has incurred significant operating losses that have depleted its liquidity and working capital position.

J. Douglas Cagle, Chairman, President and CEO, said: "After careful consideration, we concluded that a Chapter 11 restructuring represents the best long-term solution for Cagle's, Inc. and Cagle's Farms, Inc. It is our goal to reach an agreement with our creditors in a quick and efficient manner, allowing us to restructure our debt with minimal disruption to our operations."

In its filing in US Bankruptcy Court in Atlanta on 19 October, Cagle's reported assets of $92 million and debts of $63 million.

Its largest unsecured creditor was listed as ADM Milling Co. of Decatur, Illinois, which is owed $3.7 million. Other unsecured creditors include Evonik Degussa Corp. of Kennesaw, Georgia, Ampro Products Inc. of Gainesville, Georgia, and American Proteins Inc. of Cumming, Georgia.