Pilgrim's Pride (PPC) Slammed On Story About Possible Bankruptcy

Shares of Pilgrim's Pride (NYSE: PPC) are under heavy pressure today after the Wall Street Journal issued a story suggesting if the company can't raise money or get concessions from its lenders it may be forced to seek bankruptcy protection.

The article notes that the world's largest chicken company is getting hammered by rising prices for feed, falling prices for chicken and an increasingly untenable debt load. The company has been trying to restructure the company and refinance its debt, but with the debt markets frozen that is turning out not to be such an easy task. In addition, some Pilgrim's Pride suppliers are demanding new payment terms, such as payment on delivery or even in advance.

Pilgrim's Pride has been helped recently by the recent drop in corn prices and is working with potential investors, including hedge funds and private-equity groups, indicating the company may yet prevail.

In a related story from Reuters, Pilgrim's Pride told the news agency that the company it is not seeking bankruptcy protection and is working vigorously to solve its problems.

Shares of Pilgrim's Pride are down 24% this morning to $2.44, and down 92% YTD.

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