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Pilgrim’s Pride Files for Bankruptcy Protection

December 1, 2008- U.S. 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 today.

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.