The ₤76m settlement between Parmalat's former auditor Deloitte & Touche, which has been agreed with the Committee for Parmalat bond clients of San Paolo IMI, will now be proposed to the 32,000 Parmalat bondholders whom the committee represents.

The bonds were issued by the Parmalat company which collapsed in December
2003 and subsequently was financially restructured. The Deloitte proposed settlement is also made on behalf of Dianthus SpA, a company operating in Italy until July 2003 under the Deloitte & Touche name, Forbes magazine reports.

Deloitte said the terms of the proposal agreed with the bond holder committee were similar to those made with 2000 Parmalat bondholders represented by the Federconsumatori consumer group.

Deloitte said the proposal offers bondholders a payment of up to 6% of the nominal value of bond investments made before November 11, 2003, and an average of 4.5% to 5% for up to €50,000 bonds.

Further reading:

Four major banks face trial in Parmalat case

Grant Thornton faces ₤5bn claim from Parmalat

Read the store in Forbes magazine