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Dubai food conglomerate IFFCO is set to undergo provisional liquidation following months of restructuring talks that were complicated further by the ongoing US-Iran conflict, FT has reported.
An HSBC Holdings Plc-led group of lenders have started legal proceedings in a bid to gain control of the business from its owners, FT said, citing people familiar with the development.
Last year, Rothschild & Co. took centre stage in IFFCO Group’s $2 billion debt restructuring, replacing Alvarez & Marsal as advisers.
Creditors have nominated FTI Consulting as provisional liquidator in courts in the Isle of Man and Singapore, where two of IFFCO’s main legal entities are based. According to the FT report, the appointment is designed to boost creditors’ chances of preserving their assets.
IFFCO’s business faced further complications due to the Iran war with food imports grinding to a near halt following the closure of the Strait of Hormuz by Iran, the report said.
Founded in 1975, the IFFCO Group is a FMCG and Agri-business enterprise that is active in more than 50 countries, with popular brands such as London Dairy ice cream and café, Tiffany biscuits and sweets, and Noor cooking oils.
Last November, Abdul Wahab Al Halabi was appointed as IFFCO’s Executive Chairman, with a new Board of Directors formed to “guide the Group through its next phase of sustainable growth”.
Two weeks ago, that board was restructured again that led to the decision by lenders to file for provisional liquidation, FT reported, citing people familiar with the situation.
(Writing by Bindu Rai, editing by Seban Scaria)
