June 5, 2012
 

Doux group goes into administration on agreement failure
 

After failing to reach an agreement with bankers, Doux group went into administration Friday (June 1), Reuters reports.
 

A judicial administrator has been selected to help with drawing up a plan to keep the poultry giant operating. The Doux group now has court protection from creditors, notably Barclay's bank. Doux owes the bank EUR140 million (US$175 million).

Doux says it total debt is EUR340 million (US$425.8 million), EUR200 million (US$250 million) being Frangosul's share. The Brazilian company was recently sold to Brazil's JBS. The French government offered the group a cash injection of EUR350 million (US$438 million), money that Charles Doux, owner of Doux, rejected by ending negotiations.

The newly instated Socialist government wants to head off a wave of factory closures, 800 famers supply Doux and the company itself employs 3,400 individuals.
 

The EU subsidises Doux to the tune of EUR55 million (US$69 million) in the form of export subsidies, making the company the largest beneficiary of EU farm aid France.
 

Doux' major competitor, LDC has expressed an interest in buying a part of the group.