Lenders extend Pilgrim's Pride credit facilities

Associated Press

EAST TEXAS (KTRE) - Pilgrim's Pride Corporation said today that it's

reached a deal to temporarily extend its credit through the end of


The nation's largest chicken producer's previous credit waiver

extension was set to expire tomorrow. The Pittsburg, Texas-based

company had been given an extension in late September after it said

it wouldn't meet debt obligations for its current loans.

The newest extension gives Pilgrim's Price until November 26th

to meet its debt obligation to stave off default.

The company, like many food makers, has been hampered by high

costs for key ingredients like corn and oil. It hedged some of its

purchases, but as prices moderated it lost money on those hedges.

The company said in late September it would post a "significant

loss" in the fourth quarter, largely on those bad hedges.