Groupe Doux has obtained emergency funding totalling EUR17m (US$21.4m) to allow the French poultry giant to function normally in the immediate future.
It provides Doux, which went into administration earlier this month with the necessary cash flow to guarantee its day-to-day running, a spokesperson told just-food today (21 June).
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“It will allow Doux to meet its bills to its various suppliers and ensure there is feedstock for poultry, that plants keep running and that the group’s products get to market,” he said. “We are still in a tense situation but the group has moved forward in the right direction even though there is still a lot of ground to cover.”
The spokesperson said negotiations are continuing to find the full capital necessary to see Doux through its six-month period under court protection and pay off arrears owing to breeders, which run into tens of millions of euros, which takes precedence over the refinancing of Doux’s debts.
However, he declined to disclose how much capital Doux required to see it through the administration period.
The spokesman went on to “strongly deny” reports claiming Doux founder Charles Doux and his son, Jean-Charles Doux, joint CEO, had snubbed a meeting earlier this week with banks, creditors and the judicial administrator and government officials, hosted at French Ministry of Industry headquarters in Paris.
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By GlobalData“The truth is this meeting was cancelled in the early hours of the morning it was due to take place. Nothing should be read into this. No doubt many more meetings lie ahead.”
