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French Poultry Processor Faces Administration

30 May 2012, at 12:21pm

FRANCE - According to reports from France, the poultry processing giant Doux could go into receivership on Friday (1 June) because of mounting debts.

The company recently handed over the operations of its Brazilian poultry processing arm, Frangosul, to the processor JBS.

CEO Guy Odri, who has been in charge of the company since 2003, was suspended last week along with the company general secretary, Herrick Pinguet.

The chairman of the company Charles Doux has taken back control of the business and his son Jean Charles Doux is reported to be the new CEO.

According to the French economic news analysts Challenges, the company has debts amounting to €430 million to banks, suppliers and in Brazil.

Challenges says that €20 million is due to be paid to Barclays Bank in June. The company is reported to owe suppliers €90 million and have debts of €200 million in Brazil.

If administrators are called in, the analysts say that this would freeze any transactions between the parent company and its Brazilian subsidiary and would give breathing space to the whole company. The company has 10,000 employees with 3,500 in France and also has 900 breeders.