A Fort Worth bankruptcy Judge asked officials with Pilgrim’s Pride and the U.S. Trustee assigned to the case to submit briefs in support of their arguments about consulting contracts for the former chief operating officer (COO) and chief executive officer (CEO).
U.S. Bankruptcy Judge Dennis M. Lynn told both parties that he was not happy with the arrangement and asked them to submit briefs by February 12.
U.S. Trustee William T. Neary objected to the agreements saying that they violate legal restriction on severance packages during a bankruptcy proceeding.
The proposed agreements would pay former CEO Clint Rivers $83.500 a month for four months and former COO Robert A. Wright $50,000 a month for three months to secure non-compete clauses for their separation from the company.
William K. Snyder, a consultant hired to restructure the company just prior to its December 2008 Chapter 11 bankruptcy filing, told the judge at a hearing Tuesday, January 3, that it is in the company’s best interest to keep the two out of the marketplace.
“The fact is that we’re in bankruptcy and trying to keep as much business as we can.” Snyder told the judge, according to court records. “They were the face of the company (Pilgrim’s Pride).”
The pair received $143,242 in severance, as part of an agreement that restricts them from spilling trade secrets or talking negatively about the company but does not govern work for a competitor.
