JBS to be Sued over Doux Debt31 July 2013
BRAZIL - US investment management company Oppenheimer Funds is to sue Brazilian meat processing giant JBS over an unpaid loan taken out by the French poultry producer Doux.
The loan was taken out in 2008 by the French company y for its Brazilian subsidiary Frangosul.
According to the Wall Street Journal Oppenheimer Funds is a major creditor in the $100 million loan.
The Frangosul processing and production units of Doux were leased by JBS in 2012 for 10 years after the French company ran into financial trouble.
JBS also has an option to buy the Frangosul operations.
The leasing arrangement includes a processing plant in Passo Fundo, which was collateral for the loan and the Oppenheimer Funds’ Brazilian lawyer, Fernando Bilotti Ferreira, at Santos Neto Advogados, believes the arrangement breaches the agreement over it, the Wall Street Journal reports.
Doux stopped payments on the loan before the leasing agreement was signed and still owes $75 million.
When JBS agreed the leasing arrangement is said it would not be liable for Doux debts in Brazil.
TheMeatSite News Desk