Pilgrim's Pride granted more time for reorganisation plan

US chicken producer Pilgrim's Pride, which is operating under bankruptcy protection, has been granted more time to exclusively file a reorganisation plan.

The US bankruptcy court in Fort Worth, Texas, on Tuesday (Mar 24) granted the company's request to have until September 30 to exclusively file a reorganisation plan. The previous deadline was March 30.

Pilgrim's Pride filed for bankruptcy protection on December 2008 due to heavy losses and debts incurred by the US$1.3 billion acquisition of rival Gold Kist Inc. in 2007, high feed costs and low chicken prices.

The company, which was once the largest US chicken producer, said in February it hoped to exit bankruptcy protection by the end of 2009. It has idled plants, laid off workers and streamlined operations as it works to return to profitability.

Last week, Pilgrim's Pride has agreed to sell its Farmerville, Louisiana, chicken complex to California-based Foster Farmers for US$80 million.