United States-Pilgrims Pride poultry problems.

UNITED STATES.

PILGRIMS PRIDE.

Pilgrim’s Pride Corp. , the country’s largest poultry producer in the United States, wants to sell its stake a grain elevator business to joint venture partner Archer Daniels Midland Co. (ADM).

Pilgrim’s Pride, which filed for Chapter 11 protection last month, is seeking court approval to sell its interest in the the grain elevator business for $5 million, according to papers filed in U.S. Bankruptcy Court in Fort Worth, Texas.

The Texas-based chicken company is seeking to sell its stake to ADM after putting the business up for sale drew a single offer from a grain vendor, according to papers filed Friday. That deal would have netted Pilgrim’s Pride less than a sale to ADM, the company said.

Pilgrim’s Pride, which is seeking to reorganize its business in face of worldwide chicken glut, is asking to sell its interest in the joint venture absent a court-supervised auction. ButPilgrim’s Pride says ADM, which has a right of refusal to any deal, will prevent a sale of the company’s stake in the venture to anyone other than itself.

By selling the stake privately, the company will avoid the cost associated with a legal fight with ADM.