IFFCO Faces Liquidation Amid $2 Billion Debt Issue

May 5, 2026

58 min

May 5, 2026 10:31

IFFCO faces provisional liquidation amid $2 billion debt crisis

## IFFCO's Financial Struggles

Dubai-based IFFCO Group is on the brink of provisional liquidation due to a $2 billion debt crisis. The company's restructuring discussions have been stalled for several months, prompting a group of creditors led by HSBC to seek court intervention.

## Court Intervention

The creditors have proposed FTI Consulting as the provisional liquidator to take control of the conglomerate. This move comes as IFFCO faces significant operational challenges, particularly in the UAE, where disruptions in food supply chains have intensified.

## Supply Chain Disruptions

The closure of the Strait of Hormuz by Iran has forced the UAE to reroute imports through land routes, increasing reliance on local products. This has added pressure on companies like IFFCO, which depend on stable supply chains.

## Company Background

Founded in 1975, IFFCO operates various brands, including London Dairy and Tiffany, across 50 countries. The company is part of the Allana Group, an agricultural commodities trader with roots dating back to 1865.

## Leadership Changes

Last year, IFFCO appointed Abdul Wahab Al Halabi as Executive Chairman and introduced a new Board of Directors. The company has yet to comment on the current situation.

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