Pilgrim’s Pride Corp. Files for Bankruptcy in Texas

Pilgrim’s Pride Corporation and certain of its affiliates filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Northern District of Texas this morning.  Pilgrim’s Pride and its affiliates are one of the largest chicken producers in the United States and the second-largest chicken producer in Mexico.  The company’s operations in Mexico were not included in today’s chapter 11 filing.

In a press release announcing the filing, the company’s president and CEO, Clint Rivers, described the reasons for the filing as follows:

“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 a successful restructuring. We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability. We are proud of the consistently high quality of our products, our valued customer relationships and the high level of service we provide.”

Key facts about Pilgrim’s Pride:

• Assets: $3.75 billion
• Liabilities: $2.72 billion
• Annual Revenues: $8.5 billion
• Employees: 47,900
• Facilities (U.S.): 34 processing plants, 12 prepared food production facilities, 42 hatcheries, 31 feed mills, and 12 rendering plants
• Facilities (Mexico): 3 processing plants, 7 hatcheries, 4 feed mills, and 2 rendering plants 
• DIP Financing: $450 million, with the Bank of Montreal as lead agent

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