December 2, 2008
Pilgrim's Pride files for bankruptcy protection
US chicken producer Pilgrim's Pride on Monday (Dec 1, 2008) filed for bankruptcy protection to address certain short-term operational and liquidity challenges.
The company's operations are expected to continue as normal throughout the bankruptcy process while it develops a reorganisation plan to resolve its temporary operational and liquidity issues. Operations in Mexico and certain operations in the US were not included in the filing and will continue to operate outside of the Chapter 11 process.
Pilgrim's Pride is saddled by debt due to its US$1.3 billion acquisition for rival company Gold Kist Inc., and had to extend its temporary credit line three times since September.
Pilgrim's Pride has also suffered from volatile feed prices and an oversupply of meat on the market, which keeps prices low.