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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 company, based in Pittsburg, Texas, is the nation’s largest chicken producer. It 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, since 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 credit report. Its third extension was set to expire Monday afternoon.

Last month, in accordance with rules set by its lenders, the company hired a chief restructuring officer and has maintained since its credit issues surfaced that it wanted to avoid filing for bankruptcy.

After the market closed Friday, the company said in a filing with the Securities and Exchange Commission that it would delay filing its 2008 annual financial report, which had been due Nov. 26. It expects to post a loss of $802 million, or $10.83 per share, on sales of $2.17 billion for the fourth quarter, which ended Sept. 27.

Pilgrim’s Pride is the U.S. industry leader and a large chicken producer in Mexico. It has 48,000 employees and operates 35 chicken processing plants and 11 prepared-foods facilities.

The company said the bankruptcy protection it is seeking does not include operations in Mexico or certain ones in the U.S., though it did not specify which ones. It said it has also asked the court for additional authorizations so it can continue to pay salaries and provide benefits. Shares fell 52.6 cents, or 46 percent, to 62.4 cents before trading was halted on Monday.

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