October 3, 2013

France's poultry processor Doux will receive financial support from the recently-created Public Investment Bank (BPI) as confirmed by the country's Ministry of Agriculture.

"The BPI's support will contribute to bolstering the rescue plan which Doux's management will present before a commercial tribunal in Brittany in November," the company 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 €12 million (US$16 million) to the €80 million (US$109 million) 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.

Last June, Doux entered administration with debts of around €430 million (US$585 million) and hopes to exit administration next month. In its time in administration, Doux has restructured the business, selling off plants and modernising others.

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

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 majority shareholder in Doux.