Pilgrim’s bankruptcy “highly probable”

There is a high probability that major U. S. chicken producer Pilgrim’s Pride Corp. will file for bankruptcy protection as interest payments come due in December on bonds, the independent research firm CreditSights said in a note Oct. 29.

The chicken processor said Oct. 27 it got a 30-day waiver on credit covenants and would exercise a 30-day grace period on a US$25.7 million interest payment on senior notes due Nov. 3.

Chicken companies have been hurt this year by high feed costs and low sale prices for meat, particularly breast meat. Pilgrim’s spokesman Ray Atkinson wouldn’t comment on CreditSights’ prediction, but said “we continue to believe that Chapter 11 (bankruptcy) is not in anyone’s best interest.”



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