Pilgrim's Pride Going Bust?

The company is pulling out all the stops to keep afloat, but some Wall Street analysts think it's just a matter of time.

Research firm CreditSights says credit extensions and loan grace periods only postpone the company's collapse.

"Although the temporary waiver provides Pilgrim's Pride with another 30 days of life, it appears to be more illusionary than substantive," the report said.

The company has been trying to stave off bankruptcy, negotiating loan extensions with it's creditors.

In a statement on Sep. 25th, it points to weak market demand for breast meat and losses on hedged feed grain positions as major contributors to it's current business woes.

We spoke with Ray Atkinson, Pilgrim's Director of Corporate Communications regarding the report. He said the company is working on a plan to avoid bankruptcy:

"We continue to believe that chapter 11 is not in anyone's interest"

With facilities across the southeastern US and Mexico, the company employs around 50,000 people. Mr. Atkinson didn't know how many of those employees were at the plant in Mount Pleasant. The company's published fact sheet can be found here.

Atkinson didn't directly comment on prospects for layoffs, saying instead the company's new plan would focus on increasing liquidity.