IFFCO Group, one of Dubai's largest food companies with 12,000 employees across 50 countries, faces provisional liquidation after lenders led by HSBC turned to courts. The move comes after months of stalled restructuring talks complicated by a shareholder dispute and the ongoing US-Israeli war against Iran. The conglomerate operates multiple food businesses including the well-known London Dairy ice cream brand.

HSBC and other lenders have nominated FTI Consulting as provisional liquidator in courts in the Isle of Man and Singapore, where IFFCO's main legal entities are based. The company's troubles stem from a rift between the Allana brothers who now run the business founded by their father. IFFCO has been struggling to service its $2bn debt pile since last year.

The liquidation request comes at a particularly sensitive time for the UAE, where IFFCO's business disruption coincides with challenges to the nation's food supply chain due to the Iran war. The closure of the Strait of Hormuz has forced rerouting of imports and increased reliance on locally sourced products, adding pressure on IFFCO's operations. The court-appointed provisional liquidation aims to prevent further deterioration of the company's financial position while creditors preserve assets.