The company also said that lenders have agreed to provide continued liquidity under the facilities in accordance with the agreements.
“We have made significant progress in developing an appropriate and effective strategic response to the issues facing Pilgrim's Pride and we look forward to executing against that plan,” the company said in a statement. “Lenders have been constructive and supportive throughout this challenging period and we believe that like us, they are encouraged by recent industry egg set data and the continued decline in grain and other feed ingredient prices, which if sustained should bode well for our company and the industry as a whole.”
Pilgrim’s Pride was hit hard by the spike in feed prices over the summer. The company has been working to refine its strategic plan since it announced it faced a major loss for the third fiscal quarter in September.
The extension provides Pilgrim's Pride with flexibility while it continues to evaluate its opportunities to refinance and recapitalize its business. The company is working toward a solution to improve its long-term liquidity and position itself to capitalize on its strategic advantages.
Source: Pilgrim’s Pride Corp.