Pilgrim’s Pride today released its plan of reorganization by announcing an agreement to sell 64 percent of the company’s new common stock to Brazilian beef producer JBS.

“By partnering with JBS, our financial position will be stronger and we’ll have access to new markets,” said Pilgrim’s spokesperson Ray Atkinson.

According to documents posted on the company’s Web site Wednesday, Pilgrim’s Pride and JBS have agreed to a transaction worth approximately $2.8 billion. The stock purchase totaled $800 million for reorganization of Pilgrim’s Pride to JBS S.A.

“We believe there will be tremendous synergies available through this alliance that will help us capitalize on our combined strengths and increase our sales channel penetration, especially in exports to specific markets,” Atkinson said.

“All existing Pilgrim’s common stocks will be cancelled and existing stockholders will receive the same number of new common stock shares representing 36 percent of the reorganized Pilgrim’s Pride aggregate,” according to a press issued Wednesday morning by Pilgrim’s.

In addition, the plan calls for an exit facility for senior secured financing in an aggregate principal amount of $1.74 billion to be provided by a group of lenders arranged by Joint Lead Arrangers CoBank, ACB and Rabobank. Pilgrim’s expects the plan to be confirmed by the bankruptcy court in time for the debtors to emerge from bankruptcy before the end of December.

“JBS S.A., which is based on Sao Paulo, Brazil, is one of the largest beef and pork producers in the world. Their annual sales are over $20 billion, and they operate plants all over the world, including 16 facilities in the United States that are part of JBS U.S.A., their subsidiary based in Greeley, Colo.,” Atkinson said in an email to the Suwannee Democrat.

It’s too soon to say how the proposed reorganization will affect current Pilgrim’s workers, he said.

“We will be developing an integration plan with JBS over the next several months. We will continue communicating with our employees throughout the process.”

However, there is a strong possibility, Atkinson said, that several closed plants could be reopened.

“There are no current plans to close additional plants. In fact, there may be an opportunity to reconsider opening closed plants at some point in the future.”

Pilgrim’s entered Chapter 11 bankruptcy protection in December 2008.