Doux looking to exit administration next month

Doux looking to exit administration next month

France's Ministry of Agriculture has confirmed the recenty-created Public Investment Bank (BPI) will provide financial support to French poultry processor Doux.

A spokesman told just-food food minister Guillaume Garot had announced the BPI's backing during a visit to Brittany earlier this week where he met figures from the region's food industry.

"The BPI's support wil contribue to bolstering the rescue plan which Doux's management will present before a commercial tribunal in Brittany in November," the spokesman said. "The government is doing all it can to secure the future of Doux and its employees and this is the thinking behind the BPI's backing."

He declined to comment on reports the BPI would be contributing EUR12m to the EUR80m required in Doux's continuation plan. "I can't put a figure on it nor elaborate on the exact form the support will take." The spokesman ruled out the BPI becoming a shareholder in Doux.

Doux entered administration with debts of around EUR430m last June. It is hoping to exit administration next month. In its time in administration, Doux has restructured the business, selling off plants and modernising others.

Last month, Doux said Saudi food distributor Almunajem is considering taking a stake in French poultry processor Doux, which is looking to exit administration within two months.

Almunajem, which distributes Doux's products in Saudi Arabia, is weighing up a 25% holding in the company. The Saudi distributor would join a share roster that looks set to feature French investment fund Développement & Partenariat as the majoirty shareholder in Doux.