Fibre Excellence's management has withdrawn its takeover bid for the French pulp producer, paving the way for a new rescue proposal led by French financier Matthieu Pigasse as the company seeks to avoid liquidation.

The announcement marks a major shift in the restructuring process for Fibre Excellence, which has been under court-ordered receivership since 27 April after entering insolvency proceedings earlier this year. CEO Jean-François Guillot said the decision was made in response to calls from the French government and other stakeholders for renewed governance as part of a sustainable recovery plan.

The management-led proposal, submitted to the Toulouse Commercial Court on 1 June, had sought to acquire all of the group's industrial and forestry assets while preserving approximately 670 jobs. However, Guillot said the offer was withdrawn to facilitate the development of a new industrial and financial project under different leadership.

"In response to the strong expectations expressed by the State and various stakeholders regarding the importance of a renewal of governance, it was decided that withdrawing the bid was now necessary to save the group and its jobs," the company said in a statement.

Guillot added that management remains committed to supporting any solution that preserves employment and secures the long-term future of the company's paper and forestry operations.

The withdrawal follows the emergence of Matthieu Pigasse, who recently submitted a letter of intent expressing interest in acquiring Fibre Excellence. His arrival prompted the Toulouse Commercial Court to postpone its decision on the company's future until 6 July, allowing additional time for a formal takeover proposal to be prepared. Interested bidders have until 2 July to submit final offers.

Pigasse is a well-known figure in European finance. He is a partner and head of Centerview Partners’ Paris office, and previously served as Global Head of M&A and Sovereign Advisory at Lazard, as well as CEO of Lazard France. He began his career in the French public sector, working within the Treasury and Ministry of Finance before moving into investment banking. Pigasse is also best known through his media investment group LNEI (Les Nouvelles Éditions Indépendantes), which owns Les Inrockuptibles and Radio Nova, and has held investments in Le Monde and Mediawan.

French authorities have welcomed the prospect of a new investor while continuing to emphasize the strategic importance of maintaining domestic pulp production. Fibre Excellence operates France's principal market pulp mills at Saint-Gaudens in Haute-Garonne and Tarascon in Bouches-du-Rhône, producing kraft market pulp for paper and hygiene applications as well as renewable energy from biomass.

Regional governments have also reaffirmed their support for a rescue plan. The Occitanie Region has indicated its willingness to invest €5 million, while the Provence-Alpes-Côte d'Azur Region has proposed a €3 million equity contribution alongside other public support measures. Both regions have described Fibre Excellence as a strategic industrial asset for the French forestry and paper value chain.

Despite growing political support, significant challenges remain. Any successful takeover will require substantial financing to restore operations, secure timber supplies, and improve the competitiveness of the group's integrated pulp and biomass energy business. Fibre Excellence has previously argued that long-term viability depends on improved electricity pricing mechanisms, reliable access to public timber resources, and a more favorable carbon emissions framework.

Trade unions have continued to mobilize in support of the company's two mills, warning that the collapse of Fibre Excellence would threaten not only its workforce but also thousands of indirect jobs across France's forestry, wood processing, and paper industries.

The hearing scheduled for 6 July is expected to determine whether a Pigasse-led consortium can secure the future of France's last producer of market pulp or whether the group faces a more uncertain outcome.