Pilgrim's Pride files for Chapter 11 bankruptcy protection - KLTV.com - Tyler, Longview, Jacksonville |ETX News

PITTSBURG, Texas (KLTV)

Pilgrim's Pride files for Chapter 11 bankruptcy protection

Chicken producer Pilgrim's Pride is filing for Chapter 11 bankruptcy protection.      

Company spokesman Ray Atkinson says Pilgrim's Pride is reorganizing and not liquidating its assets. He says the company will keep operating.      

The Pittsburg, Texas-based company sought the bankruptcy protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas on Monday.      

The company has been saddled by debt due to the acquisition of its rival Gold Kist Inc. and has had to extend its temporary credit line three times since September. It's also hurting due to volatile feed prices and an oversupply of meat on the market, which keeps prices down.            

A spokesman for the company told KLTV 7 Monday that the overall economy and high feed prices attributed to Pilgrim's bankruptcy fall.

"One of the things that lead to this really buffeting the entire industry is that government's ethanol policy lead to such a huge run up in the corn prices. Record Highs this summer! As a result of that and weak market pricing was almost as a perfect storm hit the chicken industry," said Gary Rhodes.

ckhalil@kltv.com

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