Bondi lays out Parmalat debt plan
will see the many creditors offered stock.
According to a news report in the Financial Times, the vast majority of Parmalat's creditors will be offered stock whose net asset value is between 2 and 11 per cent of the €14.5bn ($18bn) in debt accumulated by the dairy group.
Parmalat's problems started in December last year when the company filed for bankruptcy and the firm's former chief executive Calisto Tanzi admitted having invented more than €6 billion in cash reserves and billions more in faked revenues.
Enrico Bondi, appointed by the Italian government to engineer a rescue for the insolvent and fraud-racked giant, issued the proposed debt-for-equity ratios for the 16 Parmalat subsidiaries involved in the Italian bankruptcy procedure.
Under the plan, holders of debt in Parmalat Finance Corp BV, Parmalat Netherlands, Parmalat SpA, and Parmalat Finanziaria SpA will own the assets of each of the units which are estimated to be worth between 2.3 and 11.3 per cent of each unit's total debt.
The market value of the shares will not be established until a rebaptised Parmalat, currently named Newco, begins trading on the Milan Stock Exchange, probably late this year or early next, estimated the Financial Times report.
