Pennexx Foods' Former Facility to Close.Business Editors PHILADELPHIA--(BUSINESS WIRE)--June 14, 2004 Pennexx Foods, Inc. (Nasdaq pink sheets: PNNX), has announced that its former meat processing plant, located on Tabor Road in the Port of Philadelphia The Port of Philadelphia, within the city of Philadelphia, Pennsylvania, is strategically located at the center of the Northeast Corridor. It handles a large amount of containerized traffic, making it the second largest port (by volume) in North America. Enterprise Zone, will close. Smithfield Foods  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , Inc., which assumed the plant through foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. in June 2003, reported the closing in the company's fourth quarter earnings announcement. Smithfield previously owned 41 percent of Pennexx. The plant's 185 employees will serve their last day on August 6. Pennexx, on behalf of a joint venture with Smithfield, purchased the 145,000 square-foot facility in April 2002, to support growth and increase market share as a provider of case-ready meat in the Northeast. Smithfield agreed to provide funding and to oversee the facility's design and renovation. In June 2003, Smithfield foreclosed on Pennexx's assets and took over operations when the Company defaulted on its credit agreements. Pennexx is seeking $226,000,000.00 in damages in a cross claim against Smithfield in a class action suit brought against Pennexx and Smithfield and former Pennexx directors on July 24, 2003 in federal court in Philadelphia. The lawsuit alleges that Smithfield mis-designed the Philadelphia plant which caused financial losses for Pennexx. As a result, Pennexx defaulted on its credit facility with Smithfield in June 2003. The Court has ordered that the case will enter in the Civil Trial Pool on November 1, 2004, and the final pre-trial conference will be held November 4, 2004 with all parties prepared to commence trial on that date. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Certain statements made herein that use the words "alleges", "alleged", "allegedly", "seeks", "will be held", "claims" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company's litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the litigation efforts of the Company. |
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