French poultry processor Doux Group – once the biggest producer in Europe – is to sell its Stanven feed plant for E15m before mid-November.
The firm filed for bankruptcy in June this year, and in August a French court gave its implicit backing for Barclays to take over 80% of Doux Group, in exchange for €140m owed to the bank.
The liquidation of Doux’s money-losing fresh poultry operations was also ordered by a French commercial court.
Barclays’ intervention has meant that the rest of the group, subsidiaries and exports of processed chicken products can continue to operate until the end of November. Barclays is in the process of creating a turnaround plan for the company.
Following its restructuring, the firm will employ 2,100 people, work with 300 integrated farmers and has an expected turnover of €535m in 2012. By divesting its fresh poultry unit which represented a loss of €20m this year, the firm is expected to return to profitability.
Cashflow was positive for Doux in August. But if the firm is to repay a loan of €10m to Barclays at the end of October, as was agreed in August, then financing must be found. The sale of the Stanven feed business is an option.
“Doux will ask the court to extend its observation period in November in order to refine the firm’s recovery plan, continue restructuring debts and rebuild equity.