PITTSBURG – Pilgrim’s Pride Corp. announced Monday that it has completed a written agreement with its lenders to temporarily waive the fixed-charge ration covenant under its credit facilities through the end of October.

According to Pilgrim’s Pride, the lenders also have agreed to continue to provide liquidity under these credit facilities during this same 30-day period in accordance with the terms of the waiver agreement.

Pilgrim's Pride had requested the temporary waiver after notifying lenders that it expects to report a significant loss in the fourth quarter of fiscal 2008, which ended Sept. 27, when it files its Form 10-K for such period. The company attributed the anticipated loss to high feed-ingredient costs, continued weak pricing and demand for breast meat, and the significant negative impact of hedged grain positions during the quarter.

Separately, Pilgrim's Pride also announced that it has retained Bain Corporate Renewal Group to work with management on a range of strategic issues and operational improvement. Additionally, the company said it has engaged Lazard as its investment banker to provide strategic advice regarding refinancing and recapitalization opportunities.


Source: Pilgrim’s Pride Corp.