Pilgrim's Pride lined up $450 million in debtor-in-possession funding after filing for Chapter 11 bankruptcy protection yesterday, Dow Jones Newswires reported.

The Pittsburg, Texas-based processor will receive the DIP funding from Bank of Montreal upon gaining approval from the bankruptcy court in the northern district of Texas. The money will be used to continue the normal operations of the company throughout the bankruptcy process.

Pilgrim's operations in Mexico as well as certain operations in the United States were not included in the bankruptcy filing and will continue to operate outside of the Chapter 11 process, according to a note to investors from Stephens Inc. analyst Farha Aslam.

"The bankruptcy could also be favorable for industry competitors," Aslam said. "Industry participants anticipate four to five Pilgrim's plants could be taken out of production."

No production cuts or plant closures have been announced at this time.

Stephens Inc. also announced that it is terminating its coverage of Pilgrim's due to the announcement of the bankruptcy filing.

(update clarified financing was through Bank of Montreal)

For more stories, go to www.meatingplace.com.