United States-Pilgrims Pride refuse $60 million.

UNITED STATES-PILGRIMS PRIDE REFUSE OFFER.

Pilgrim’s Pride said it rejected the latest offer to purchase its Farmerville facility, a combined $60 million offer from Foster Farms and the state of Louisiana, but gave Governor Bobby Jindal a price it would consider.

In a statement, the company said $60 million for the Farmerville complex "would represent a significant financial loss for the company, " but added that it gave Jindal the price the company would consider, subject to approval by the company’s lenders, creditors and the bankruptcy court.

The News Star in Monroe, La., put that price at $80 million. The company statement said the price it gave would be only enough to prevent the company from taking a loss on the sale.

"We have made it clear from the beginning that we would consider selling the complex if someone brought a meaningful offer to us that prevents a loss," said Don Jackson, president and chief executive officer. "Based on the capital we have invested in the plant, along with its current debt, the figure we have shared with the governor is a heavily discounted price for such a potentially valuable asset."

Other alternatives

Jackson also said the company has discussed several alternatives with the governor and his staff. Under one proposal from the company, the state of Louisiana would extend financial support to growers so they could make interest payments on existing loans for their chicken houses while the plant is idled.

The financial support would serve as a "bridge" until the Farmerville plant could be re-opened. As part of the proposal, Pilgrim’s Pride would continue operating the further-processing portion of the plant with financial assistance from the state to help offset some of the additional costs the company would incur by operating the plant under these conditions.

The company estimates the total cost to the state of Louisiana from this proposal over a two-year period to be approximately $8 million, which is far less than the $40 million the state has offered in assistance to Foster Farms.

"We remain open to further discussions with the governor and his staff," Jackson said in the statement, adding that the company would reopen the plant in its entirety if certain economic conditions.