Operations to continue despite bankruptcy

by Editor fleischwirtschaft.com
Tuesday, December 02, 2008

Pilgrim's Pride announced that it has filed for voluntary Chapter 11 bankruptcy protection.

In conjunction with the filing, the Company is seeking approval to enter into a $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. If approved by the Court, the DIP Financing will provide an immediate source of funds to the Company, enabling it to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.

Since September, Pilgrim's has worked out three separate deals with its lenders to extend its credit lines and avoid filing for bankruptcy. The last of the deadlines passed 1 December 2008.

Pilgrim's Pride Corporation employs approximately 48,000 people and operates 35 chicken processing plants and 11 prepared-foods facilities. Pilgrim's Pride products are sold to foodservice, retail and frozen entree customers.