COPY-Lenders extend Pilgrim's Pride credit facilities - - Tyler, Longview, Jacksonville |ETX News

COPY-Lenders extend Pilgrim's Pride credit facilities

Associated Press - October 27, 2008 1:45 PM ET

Pilgrim's Pride Corporation said today that it's reached a deal to temporarily extend its credit through the end of November.

The nation's largest chicken producer's previous credit waiver extension was set to expire tomorrow. The Pittsburg, Texas-based company had been given an extension in late September after it said it wouldn't meet debt obligations for its current loans.

The newest extension gives Pilgrim's Price until November 26th to meet its debt obligation to stave off default.

The company, like many food makers, has been hampered by high costs for key ingredients like corn and oil. It hedged some of its purchases, but as prices moderated it lost money on those hedges. The company said in late September it would post a "significant loss" in the fourth quarter, largely on those bad hedges.

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