May 22 - Spanish food company Sos Cuetara SA has announced it will take legal action against two former top executives.
The olive oil and rice distributor said it would take legal action against former chairman Jesus Salazar and former vice chairman Jaime Salazar. The move is related to an unauthorized loan made with company funds to an investment vehicle linked to the two brothers.
The Salazar brothers were dismissed in late April. According to regulatory filings, they control 28.2% of the company.
The board also named Jose Manuel Muriel Jimenez as its new chief executive.
Sos said the board has hired Swiss investment bank Credit Suisse to help restructure the company's finances – as it intends to raise EUR200 million through a capital increase.
During the Salazar brothers' reign at the company, Sos took out significant debt to carry out a string of large acquisitions. It eventually became the world's leading olive oil company, but has also come under significant pressure to cut debt.