Bankrupt Pilgrim's Assets Will Attract Significant Interest

On December 02 The US's largest poultry producer Pilgrim's Pride filed for Chapter 11 bankruptcy protection, having struggling for months to contend with high debts, low demand and rising feed costs. Poultry companies in the US have all struggled over the last year, but Pilgrim's Pride had entered the current downturn in a particularly weak position after its highly leveraged, US$1.1bn purchase of smaller rival Gold Kist in January 2007. Pilgrim's had repeatedly sought extensions from creditors on its debt covenants, but to no avail, and now attention will turn to the possible fruits of Pilgrim's failure.

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