ATLANTA, Oct. 19, 2011 /PRNewswire/ -- Cagle's, Inc. (NYSE
Amex: CGL.A) today announced that it and its wholly-owned
subsidiary Cagle's Farms, Inc. (collectively, "Cagle's") have filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code. Cagle's filed the petitions today in
the United States Bankruptcy Court
for the Northern District of Georgia in Atlanta,
Georgia.
Cagle's emphasized that normal operations and customer service
will continue without disruption, including sales, order
processing, and delivery. In connection with its Chapter 11
filing, Cagle's also announced that it anticipates receiving court
approval for a debtor-in-possession (DIP) financing facility from
AgSouth Farm Credit, ACA.
Cagle's noted that, 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.
"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.," said J.
Douglas Cagle, Chairman, President and CEO. "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."
"We appreciate the ongoing loyalty and support of our employees,
growers, customers and vendors," Cagle commented, "Their dedication
and hard work is critical to our success. We remain committed
to leading Cagle's toward a strong and profitable future with the
help of our employees, our growers, our customer base, and our
vendor community. Cagle's remains a viable business that is
deeply committed to our employees and the customers that we serve."
Cagle's has not set a target date for emergence from Chapter 11,
but Cagle stressed that the company's strategy is to move quickly.
"There is much work ahead," he stated, "but time and time
again, our employees have proven their ability to face significant
challenges and handle change. By working together, we can
preserve Cagle's and its future."
Cagle's, headquartered in Atlanta,
Georgia, is an integrated poultry company that has been in
operation for over sixty years. Cagle's expresses its sincere
gratitude to the multitude of employees, growers, vendors and
customers that have contributed to Cagle's success and growth over
these many years and thanks them for their loyal support.
SOURCE Cagle's, Inc.