A major food company inDubaiis set to be placed into provisional liquidation, according to reports. IFFCO Group is said to have debts of nearly £1.5 billion and made little progress in restructuring talks amid disputes among key shareholders and theIranwar.
The conflict, which began in late February, and thecontinued disruption in the Strait of Hormuzhas put additional pressure on the company’s supply chains, it is claimed. The United Arab Emirates — where much of IFFCO’s business is based — is heavily reliant on food shipments via its ports. IFFCO is described in reports as one of the largest food companies in Dubai, if not the biggest.
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The company is a conglomerate and its brands span more than 20 food and personal care categories, its website says.
IIFCO’s products include olive oil, biscuits, poultry, as well as animal feed.
It is best known by Dubai residents as the operator of the London Dairy ice cream brand, according to theFinancial Timeswhich first reported the news of the provisional liquidation.
A group of lenders to IFFCO have approached the courts in an attempt to take control of the company, the FT reported, citing people familiar with the development.
Business advisory firm FTI Consulting has reportedly been nominated as provisional liquidator in courts in the Isle of Man and Singapore.
The locations are where two of IFFCO’s main legal entities are said to be based.
Source: Daily Express :: World Feed
