PILGRIM'S PRIDE FILES FOR BANKRUPTCY PROTECTION
MONTGOMERY, Ala. -- Pilgrim's Pride Corp, a Texas-based company that operates 14 facilities in Alabama, including poultry processing plants in Athens, Boaz, Russellville and Enterprise, filed for Chapter 11 bankruptcy protection on Dec. 1. Pilgrim's Pride is the largest poultry production company in the world and has faced an oversupply of chicken in the marketplace plus higher commodity prices, including feed.
"We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability," Clint Rivers, the company's chief executive, said in a statement.
Pilgrim's Pride became the market leader in poultry after it acquired Gold Kist in December 2006 for $1.1 billion, surpassing Tyson as number-one poultry producer in the world.
"We hope this Chapter 11 bankruptcy protection allows Pilgrim's Pride to restructure, maintain daily operations and continue to honor contracts with poultry and pork producers," said Alabama Farmers Federation Poultry and Pork Divisions Director Guy Hall. "This bankruptcy, and Russia seeking to cut American poultry imports by 300,000 metric tons, are likely to cause a continued reduction in the number of chickens placed on producers' farms, reducing on-farm income significantly."