The judicial restructuring of Fibre Excellence, France’s sole domestic producer of commercial market pulp, has reached a critical stage following a series of decisive rulings by the Toulouse Commercial Court.

On Monday, July 27, the court formally rejected the only comprehensive takeover offer for the group, submitted by French financier Matthieu Pigasse through Combat Holding. Despite receiving support from the Occitanie and Provence-Alpes-Côte d’Azur (PACA) regional authorities, as well as major trade unions, the court ruled that the proposal did not provide sufficient financial guarantees to secure the company’s long-term viability.

The judges determined that the offer depended on unresolved commitments from the French government regarding key factors affecting the group’s competitiveness, including energy costs, wood supply security, and carbon quota obligations.

Following the rejection of the group-wide acquisition plan, the court issued separate rulings concerning Fibre Excellence’s two pulp mills, resulting in contrasting outcomes for the company’s production sites.

Judicial Liquidation of Fibre Excellence Provence (Tarascon)

On Wednesday, July 29, the court ordered the judicial liquidation of Fibre Excellence Provence, which operates the Tarascon pulp mill in the Bouches-du-Rhône region, along with its green energy subsidiary Biowatt SAS.

The judges concluded that the facility’s financial situation had become irreversibly compromised, with liabilities approaching €105 million. The decision brings operations at one of Southern France’s key industrial sites to an end and directly impacts approximately 270 employees, while also affecting a wider forestry supply chain that depends on the mill.

The liquidation has triggered strong reactions from regional labor organizations and local representatives. Union members and workers, who had occupied the Tarascon plant gates since July 21, expressed deep frustration over the absence of government intervention to preserve the group’s two-site industrial structure.

Saint-Gaudens Granted Additional Time as Soprema Steps Forward

In contrast, the Saint-Gaudens pulp mill in Haute-Garonne has received a temporary extension after a late-stage expression of interest emerged from Soprema, a French multinational specializing in waterproofing, insulation, and sustainable building solutions.

The court granted additional time to assess whether Soprema’s proposal could form the basis of a viable recovery plan. The company confirmed its commitment by placing a required €2 million guarantee into escrow late Wednesday, paving the way for a further court review on a possible extension of the observation period.

The next stage of the proceedings will focus on whether Soprema’s proposal can secure the future of the Saint-Gaudens facility, preserve around 270 direct jobs, and maintain the stability of France’s domestic wood procurement network.

The developments mark a major turning point for Fibre Excellence and France’s market pulp industry, with the future of Saint-Gaudens now depending on whether a new industrial solution can be validated by the court.