One of the leading poultry producers in the US, Pilgrim’s Pride, has filed for Chapter 11 voluntary Chapter 11 bankruptcy protection.
Company president and CEO Clint Rivers stated that over the past year, Pilgrim’s Pride has faced a number of significant challenges, including high feed-ingredient costs, an oversupply of chicken, weak market pricing and softening demand.
“After careful consideration of all available alternatives, the company’s board of directors determined that a Chapter 11 filing was a necessary and prudent step and the best way to obtain the financing necessary to maintain regular operations and allow for successful restructuring. We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability.”
The processor is also seeking approval to receive debtor-in-possession financing amounting to $450 mln in order to continue the daily operations of its business, including the payment of wages.
The company said operations are expected to continue as normal during the bankruptcy process, and operations in Mexico and certain operations in the United States were not included in the filing.
Over the past 3 months, Pilgrim’s Pride has worked out 3 separate deals with its lenders to extend its credit lines and avoid filing for bankruptcy.