PITTSBURG, Texas—Pilgrim's Pride Corp., the nation’s largest poultry supplier, filed for voluntary Chapter 11 bankruptcy protection on Dec. 1, citing high feed-ingredient costs, an oversupply of chicken, weak market pricing and softening demand.
Company operations are expected to continue as normal throughout the bankruptcy process while it develops a reorganization plan to resolve its temporary operational and liquidity issues. Pilgrim’s Pride operations in Mexico and certain operations in the United States were not included in the filing and will continue to operate outside of the Chapter 11 process.
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 financing will provide an immediate source of funds to Pilgrim’s Pride, 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.
