July 27, 2012

UK banking and financial firm, Barclays, could purchase a 70% stake in French poultry company, Doux, which would sustain the debt-ridden firm and keep about 3,400 jobs.

Doux, which entered into administration in June 2012, owes EUR140 million (US$172 million) to Barclays.

A Doux spokesperson told Reuters that the company has sent a plan to a commercial court in northwest France, which features participation as well as equity swap for debt by Barclays.

According to the plan, Saudi company, Al-Munajem, would also acquire a 10% stake in the poultry firm, the news agency reported citing a source.

The EUR28 million (US$34.3 million) recovery plan will enable Doux to keep functioning during the court protection period and safeguard jobs.

Doux, one of the world's largest poultry exporters, was put into administration by a court in Quimper after the company suspended payments to its creditors. The company struggled with high farm input prices and increased competition, and was burdened with a debt of EUR340 million (US$417 million).

The Doux family currently owns 80% of the company, while French global banking firm, BNP Paribas, holds a 20% stake.