Skip to comments.Pilgrim's Pride files for bankruptcy protection
Posted on 12/02/2008 2:08:55 PM PST by Oshkalaboomboom
Pilgrim's Pride Corp., the nation's largest chicken producer, which has plants in northeast Georgia, filed for Chapter 11 bankruptcy protection on Monday, a move some analysts had predicted given the company's sagging debt load and volatile feed prices.
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, saying that as of Sept. 27 it had $3.75 billion in assets and $2.72 billion in debts.
Company spokesman Ray Atkinson said Pilgrim's Pride was reorganizing and not liquidating its assets, and the company will keep operating throughout the reorganization process.
Pilgrim's Pride has been saddled by debt due to the acquisition of rival Gold Kist Inc. in 2007. That $1.3 billion acquisition is now the primary cause of its large debt load, analysts say.
The company's financial problems have been known for months, and it has had to extend its temporary credit line three times since September - most recently as last week. Its third extension was set to expire Monday afternoon.
After the market closed Friday, the poultry producer said in a filing with the Securities and Exchange Commission that it would delay filing its 2008 annual financial report. It expects to post a loss of $802 million, or $10.83 per share, for the quarter ended Sept. 27. Those results include a non-cash charge of $501.4 million, or $6.77 a share due to the impairment of goodwill related to its acquisition of Gold King.
The nation's meat makers, especially Pilgrim's Pride, are hurting as their profits shrink in the wake of high commodity prices for key inputs like corn and oil. Those prices are now moderating after reaching record highs this summer, but they are still high for producers. Further hurting the industry is weak pricing due to a drop in demand in foodservice and an oversupply of meat on the market.
Pilgrim's Pride also said in a statement that it is seeking approval to enter into a $450 million debtor-in-possession financing agreement arranged by Bank of Montreal. The company said if the financing is approved by the court, the money will help it run its daily operations, including paying wages and other obligations.
Pilgrim's Pride has Georgia operations in Dalton, Ellijay, Gainesville, Elberton, Canton, Athens, Carrollton and Commerce.
MOUNT PLEASANT, Texas Federal agents say their case for a series of workplace raids in five U.S. states was strengthened by identity theft victims who recounted stories of plummeting credit scores and medical benefits denied.
Federal authorities carried out the sweeps Wednesday, arresting hundreds of workers at Pilgrim's Pride chicken plants on charges of identity theft, document fraud and immigration violations.
Yep, while I certainly feel for the workers at the company, they have supported the most pro-illegal alien policies in the country (them and Tyson.)
Debt always kills in the end.
Pilgrim’s Pride has been saddled by debt due to the acquisition of rival Gold Kist Inc. in 2007.
Sometimes quickly, sometimes it takes decades.
Hopefully, American Apparel is next.
Pilgrims chicken poop. We should all file chapter 7 due to taxes.
Pilgrim's Pride was one of the big financial backers in Georgia for Saxby Chambliss when he was trying to convince us that letting illegals into the country was good for America.
I didn't know this about him. :(
Ohh, I hadn’t heard of that company. What is their product?
They turned Gold [Kist] into chicken poop.
God has a sense of humor. He likes to laugh at Taxme Shameless a lot more often than others.
Today is the runoff for the senate seat here GA. What timing!
Taxme is a RINO and won’t ever change. Hope it tastes good.
“Pilgrim’s Pride was one of the big financial backers in Georgia for Saxby Chambliss when he was trying to convince us that letting illegals into the country was good for America. Can you say schadenfreude?”
Parts of Gainesville look like Mexico north. It is the draw of the poultry industry in the area.
That backing of illegal immigration is what got Chambliss into hot water with the voters to begin with. IF he wins today, it will be interesting to see his illegal immigration stance in the future. This issue is not going away in GA (and is getting hotter every year.) Unless he becomes an anti-illegal immigration crusader in the senate, He will have another hard election 6 years from now.
Here he is with our other esteemed Senator and a few of their good friends.
The chickens are coming home to roost.