Pittsburg, Texas-based Pilgrim's Pride announced that it has filed for voluntary Chapter 11 bankruptcy protection.

The processor is also seeking approval to receive debtor-in-possession financing amounting to $450 million in order to continue the daily operations of its business, including the payment of wages.

"Over the past year, Pilgrim's Pride has faced a number of significant challenges including high feed-ingredient costs, an oversupply of chicken, weak market pricing and softening demand," said Clint Rivers, president and CEO of the company. He added that the Chapter 11 filing is the most prudent way to obtain the financing necessary to allow for reorganization

Since September, Pilgrim's has worked out three separate deals with its lenders to extend its credit lines and avoid filing for bankruptcy. The last of the deadlines passed this morning.

Shares of Pilgrim's Pride were trading at 62 cents, down more than 45 percent, in early afternoon trading on the New York Stock Exchange.