US: Pilgrim's Pride gets another lending reprieve
By: just-food.com | 27 November 2008
Ailing US poultry giant Pilgrim's Pride has struck a fresh deal with its lenders lasting until Monday (1 December).
The company said yesterday (26 November) its backers had extended the temporary waiver under its credit facilities until noon (CT) on 1 December.
"Pilgrim's Pride continues to pursue opportunities to refinance and recapitalise its business, and to position itself to capitalise on its strategic advantages," the company said.
Some 335 jobs are to go across the Pilgrim's Pride business in a bid to increase operational efficiency and reduce costs. The cuts represent less than 1% of Pilgrim's Pride's total workforce.
Pilgrim's Pride's profits have been hit by soaring feed costs and weak poultry prices in recent months. The company's high level of indebtedness, primarily the result of its takeover of Gold Kist last year, have also become an increasing concern amid the turmoil in the credit markets, prompting industry speculation that the poultry giant could facing bankruptcy in a matter of months.
The company has made a series of job cuts this year and earlier this month appointed a restructuring officer to help devise plans to revitalise the business.
Sectors: Meat & poultry
Companies: Pilgrim’s Pride
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