IFFCO faces provisional liquidation amid $2 billion debt crisis

Dubai: UAE-based IFFCO Group is close to entering provisional liquidation after months of stalled restructuring talks, according to a Bloomberg report citing Financial Times.

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A group of creditors led by HSBC Holdings Plc has sought court intervention to take control of the Dubai-based conglomerate, which has around $2 billion in debt, the report said, citing people familiar with the matter. The lenders have nominated FTI Consulting as the provisional liquidator.

The development comes amid mounting operational challenges for IFFCO. A significant portion of its business is based in the UAE, where food supply chains have been disrupted due to the ongoing regional conflict.

Iran’s closure of the Strait of Hormuz has forced the UAE to reroute some imports via land routes and increase reliance on locally sourced products, adding pressure on companies dependent on steady supply chains.

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Founded in 1975, IFFCO operates brands including London Dairy ice cream, Tiffany, Alfa, Allegro, and has a presence in around 50 countries. Its business spans food, packaging, chemicals and logistics. The company traces its origins to India’s Allana Group, an agricultural commodities trader established in 1865.

The latest developments follow changes to the company’s leadership last year, when IFFCO announced the appointment of Abdul Wahab Al Halabi as Executive Chairman and the formation of a new Board of Directors.

Gulf News has reached out to IFFCO for comment. A response is awaited.