IFFCO Group, based in the UAE, is reportedly working on restructuring its debts, which amount to approximately $1.5 billion (5.5 billion AED), a move that could emerge as one of the largest debt restructurings in the Middle East in recent years.
Creditors are collaborating with PricewaterhouseCoopers (PwC) to explore potential restructuring options, while IFFCO has appointed Alvarez & Marsal as its consultant, according to sources who requested anonymity to discuss confidential information.
Recently, IFFCO informed its lenders of its decision to halt principal repayments on its debts, as noted by one insider.
The group operates several well-known brands, including London Dairy ice cream, Tiffany biscuits, and the LDC Kitchen & Coffee café chain.
Discussions are still in the early stages, and there is no guarantee that a restructuring agreement will ultimately be reached.
Since 2020, the Middle East has seen numerous significant debt restructuring efforts, such as the $15 billion debt restructuring by Saudi Arabia’s Binladin Group, the $7 billion restructuring carried out by NMC Health in the UAE, and KPP Group’s restructuring of $2 billion in debts.
Founded in 1975, IFFCO operates in nearly 50 countries, with its portfolio encompassing food products, packaging, chemicals, and logistics services, according to its official website.