Despite industry speculation, Pilgrim's Pride Corp. is not planning to file for bankruptcy protection, the Wall Street Journal reported.

"We don't believe that a bankruptcy filing would be in anyone's best interest, certainly not for our lenders, nor for our company's investors," said company spokesman Gary Rhodes. He added that the Pittsburg, Texas-based chicken processor has "been focused on developing a comprehensive business plan" that will address financial challenges facing the company and the industry as a whole.

Pilgrim's announced in September that it plans to see a "significant loss" in its fourth quarter earnings. Following the announcement, the company enlisted the aid of Lazard, an advisory investment bank, and signed on to work with Bain Corporate Renewal Group on strategic issues such as operational improvement.

Less than a week later, Pilgrim's received a 30-day covenant waiver from its lenders to avoid defaulting on loans. In early October, the company retained the firm of Weil Gotshal & Manges LLP as bankruptcy council, according to WSJ.

Pilgrim's has until Oct. 28 to negotiate a new deal with its lenders, after which time bankruptcy could become a more likely possibility. Analysts, however, think the company has a chance of securing its finances by that time.

"Based on our conversations at the NCC meeting, we are more convinced that [Pilgrim's] will be able to get financing beyond the current 30-day agreement," said Farha Aslam of Stephens Inc. Equity Research, in a note to investors.

Analsyts have also speculated that Pilgrim's is in the process of analyzing the potential sale of assets, including its Mexican operations and other domestic poultry plants.

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