Long list of worries

Credit crisis, housing bubble, sub-prime implosion, falling dollar, stumbling equity prices, higher fuel prices, higher food prices, and the list gets longer. The financial fallout has and will hit this part of the state in a hard way if Pilgrim's Pride is unable to master new terms under its current credit facilities on October 28, 2008.

The financial crisis has now come to roost right here in main street Pittsburg, Texas and Camp County. The domino effect of a wounded Pilgrim's Pride is not good for our local merchants, the local Brookshire's, the local folks who sale gasoline, pop, candy, lotto tickets, etc. This will not be good for the local real estate market, and we could possibly see some of those 25% plus lower home valuations in our near future. At the coffee shop round tables I continually here how Pilgrim's Pride is not paying their fair share - we may get to find out their fair share has declined in a major way. If you collect property taxes your kitty may get smaller in the future.

Anyone know the value of a three story office building in rural Texas? How about an empty freezer plant not located on an interstate highway? All the other meat producers are in similar shape as Pilgrim's Pride so I guess they want be coming to Camp County to spend money they don't have in their coffers.

Get ready Main Street for Wall Street is knocking on your door.

Here is a wise word for Twilight Super and crew - you better be paying close attention to your pennies! It might be a smart move to cut back on all unnecessary spending until you see where the ship is truly headed. Halloween doom and gloom has arrived a little early in our neck of the woods this year.

PITTSBURG, Texas, Sept. 29 /PRNewswire-FirstCall/ -- Pilgrim's Pride Corporation PPC today announced that on September 26, 2008, it successfully completed a definitive written agreement with its lenders to temporarily waive the fixed-charge coverage ratio covenant under its credit facilities through October 28, 2008. The lenders also have agreed to continue to provide liquidity under these credit facilities during this same 30-day period in accordance with the terms of the waiver agreement.
Pilgrim's Pride had requested the temporary waiver after notifying lenders that it expects to report a significant loss in the fourth quarter of fiscal 2008, which ended September 27, when it files its Form 10-K for such period. The company attributed the anticipated loss to high feed-ingredient costs, continued weak pricing and demand for breast meat, and the significant negative impact of hedged grain positions during the quarter. The company does not anticipate that any significant hedging gains or losses will be recognized beyond the fourth quarter of fiscal 2008 on the few positions that remained open past the end of such period.
Separately, Pilgrim's Pride also announced that it has retained Bain Corporate Renewal Group to work with management on a range of strategic issues and operational improvement. Additionally, Pilgrim's Pride has engaged Lazard as its investment banker to provide strategic advice regarding refinancing and recapitalization opportunities.