Bondi elected chief executive of Parmalat

Enrico Bondi has been elected chief executive of Parmalat, winning 98% of the
vote after a tense four-hour meeting of shareholders.

Bondi and his 10-strong management team were elected after a nail-biting
meeting on Tuesday, which saw several of Parmalat’s former financiers wait until
the final moments to decide whether to vote.

Several major banks chose not to attend the meeting, and many creditor
shareholders elected to leave the room at the last minute rather than abstain
from voting – which counts as a ‘no’ under Italian law.

The reluctance of many banks to support Bondi relates to the fact that he’s
suing them for billions of euros, alleging connivance and sloppy lending against
the old Parmalat. However, opposition to him could have damaged their
reputations and cost them as shareholders, as Parmalat’s recovery saw bank
creditors swap debt for equity.

Much hard work lies ahead for Bondi, who hopes to strengthen the dairy group
via acquisitions and the many court cases with banks that still under way.

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