CHATEAULIN, France – Doux is seeking court protection from its creditors after failing to reach an agreement with bankers, according to Reuters.
The company’s debt totals 340 million euros ($420.39 million). This includes 200 million euros in Brazil where it bought Frangosul and 140 million euros the company owes to Barclays. Reuters reported that court protection would help convince Barclays to turn some or all of the debt into an equity stake. The move would also absolve the company of Frangosul’s debts.
In early May, the company leased Frangosul’s poultry processing plants to JBS SA in a renewable 10-year contract.