Bankruptcy is "highly probable" according to CreditSights, a New York-based research firm. The Associated Press reports that the Pittsburg, Texas-based company has dealt with high input costs and weak demand in recent months and that the company announced it will exercise a 30-day grace period in making a $25.7 million interest payment due in early November. Following the grace period, "a bankruptcy scenario now seems highly probable," according to CreditSights.
Meanwhile, the Associated Press also reported that Pilgrim's Pride spokesman Ray Atkinson said the company continues "to believe Chapter 11 is not in anyone's best interest.”
Research firm predicts Pilgrim's Pride could face bankruptcy
October 31, 2008