MILWAUKEE • Pilgrim’s Pride Corp. filed for Chapter 11 bankruptcy protection on Monday, hurt like other meat producers by volatile feed prices and slumping demand but also hobbled by an unmanageable debt load.

The Pittsburg, Texas-based company, the nation’s largest chicken producer, sought protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas, saying that as of Sept. 27 it had $3.75 billion in assets and $2.72 billion in debts.

Pilgrim’s Pride, which controls about 23 percent of the U.S. chicken market, will continue operating during the reorganization and will not liquidate its assets, spokesman Ray Atkinson said. “We really believe this will help us come out a lot stronger and we expect it to be business as usual,” Atkinson said.

The chicken producer has been saddled by the debt from its $1.3 billion acquisition of rival Gold Kist Inc. in 2007 – what analysts cite as the primary cause of its large debt load.

Pilgrim’s Pride’s financial problems have been evident for months. It said in late September it would post a “significant loss” in the fourth quarter, citing woes from hedging on feed inputs like corn. It has had to extend its temporary credit line three times since September – most recently last week. Its third extension was set to expire Monday afternoon.

Many of the nation’s meat producers are seeing their profits shrink in the wake of high commodity prices for items like corn and oil. Those prices are moderating after reaching record highs this summer, but are still high for producers. Further hurting the industry is a drop in demand, since cash-strapped consumers are cutting back on their restaurant spending, and an oversupply of meat on the market. Both those factors keep prices down and make it more difficult for meat companies to recoup their costs.

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