JBS faces lawsuit for easel of Frangosul assets
The American investment fund Oppenheimer, along with ING Partners, has filed a lawsuit in São Paulo against JBS SA and Doux Frangosul. They argue that JBS must pay US$ 73.8 million creditors of Frangosul.
JBS entered the poultry industry when it leased the Brazilian assets, in addition to the brands, of France's Doux (or Frangosul) for ten years, with an option to purchase and without an obligation to pay the company's debts in Brazil. Frangosul still exists as a company, but only in name.
ING and Oppenheimer say that although the deal has been labeled a lease, the transaction entered into by JBS is a disguised incorporation of Frangosul.
They also argue that JBS is avoiding taking responsibility for the indebted company.
The two creditors say JBS and Doux Frangosul had the clear intention to defraud them. They have asked a court in São Paulo to recognize the incorporation of Frangosul by JBS.