Brasil Foods Chases Doux Advances

12 November 2012, at 8:07am

BRAZIL - Brasil Foods is to take steps to recover assets connected to the pig production activities of the French company, Doux, in Brazil.

These assets were promised to Brasil Foods (BRF) in 2011 and according to financial statements, the assets could have been transferred either to Brasil Foods or other third parties through auction.

The agreement between the two companies, allowed Brasil Foods to recover the value of the guarantees made by Doux, which Brasil Foods had advanced but were not settled by Doux.

The statement authorises Brasil Foods to take whatever measures are necessary to recover any advances made to Doux in 2011 that had been shown on the company's balance sheet.

Brasil Foods said that there will be no initial impact on its balance sheets over this issue but it will keep the markets informed.