Tuesday, June 16, 2009

Smithfield Negotiates With Lenders

Smithfield Foods (NYSE:SFD) announced Q4 and year end losses. Nothing to be surprise about at this point the problems are well documented. The press release attributed several comments to a Mr. Pope who we assume is the President and CEO. He was not introduced in anyway. (Clever search engine management, perhaps?)

But here is the comment he made:

“Turning to the company's financial condition, Mr. Pope stated, "We are constantly evaluating options associated with pushing off near term maturities, seeking permanent covenant relief and reducing our overall debt levels. Toward that end, I am pleased to report that we are continuing discussions regarding refinancing with various lenders, well in advance of current maturities. In addition, we have made significant progress on improving our balance sheet, reducing debt and increasing liquidity."

OK so you are talking to your lenders. That’s nice but what are you getting in return?