Parmalat USA seeks bankruptcy protection
The US subsidiary of bankrupt Italian dairy group Parmalat has filed for Chapter 11 bankruptcy protection.
Link: Parmalat special report
The filing was made as US inspectors from the Securities & Exchange Commission arrived in Italy to focus on the work done by US banks for Parmalat.
Parmalat’s collapse in December was triggered after fake documentation was found showing a subsidiary held €4bn in an account at Bank of America – this hole has since grown to €14.5bn.
The US filing is believed to have been made following pressure from GE Capital, who has agreed to provide a $35m loan to Parmalat USA and will make it easier for Parmalat’s government appointed administrator Enrico Bondi to keep control of the US assets while weighing up the options for Parmalat’s various businesses, the FT reported.
PwC secured the sale of Parmalat UK last week to rival dairy group, Dale Farm, a Northern Ireland based dairy processor.