ITALY: GOVERNMENT DECREE GIVES FOOD GROUP "PARMALAT " A CHANCE FOR QUICKER BANKRUPTCY PROTESTION

Record ID: 647879

  • Title: ITALY: GOVERNMENT DECREE GIVES FOOD GROUP "PARMALAT " A CHANCE FOR QUICKER BANKRUPTCY PROTESTION
  • Date: 23rd December 2003
  • Summary: (U6) ROME, ITALY (DECEMBER 23, 2003) (REUTERS - ACCESS ALL) 1. WIDE OF EXTERIOR OF PARMALAT DISTRIBUTION CENTRE IN ROME 0.05 2. VARIOUS OF TRUCKS AND EMPLOYEE 0.15 3. CLOSE OF PARMALAT SIGN ON TOP OF BUILDING 0.15 4. SLV LORRY LEAVING DEPOT 0.28 5. SCU (SOUNDBITE) (Italian) CUSTOMER PICKING UP MILK SAYING: "Everywhere you go, everybody is worried about what's happening." 0.35 6. SLV TRUCK DRIVING OFF 0.40 7. WIDE OF PARMALAT BUILDING 0.47 8. SLV EMPLOYEE ENTERING BUILDING 0.49 9. SLV EMPLOYEES CLOSING DOOR ON CAMERA 0.56 10. VARIOUS OF EXTERIORS OF DISTRIBUTION CENTRE (3 SHOTS) 1.09 11. VARIOUS OF GATE OF DISTRIBUTION CENTRE BEING CLOSED (2 SHOTS) 1.23 12. VARIOUS OF INDUSTRY MINISTER ANTONIO MARZANO AT NEWS CONFERENCE 1.31 13. VARIOUS OF MEDIA AT PRESS CONFERENCE (2 SHOTS) 1.45 14. SCU (SOUNDBITE) (Italian) INDUSTRY MINISTER ANTONIO MARZANO SAYING: "The objective of this decree, which will become law, is not to safeguard shareholders, nor to safeguard managers but that of safeguarding jobs, industries, the vitality of the industries, its Italianess. And that of safeguarding fornitori. This decree will be applied in all cases with the requisites outlined. The first case in which it will be applied is that of Parmalat." 2.44 15. VARIOUS OF ROUND TABLE OF DISCUSSIONS BETWEEN INDUSTRY MINISTER ANTONIO MARZANO, AGRICULTURE MINISTER GIANNI ALEMANNO WITH REPRESENTATIVES OF DAIRY FARMERS (8 SHOTS) 3.16 10. VARIOUS OF ROUND TABLE DISCUSSIONS Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 7th January 2004 12:00
  • Keywords:
  • Location: ROME, ITALY
  • Country: Italy
  • Reuters ID: LVA5197K86D4719ZLRSVVTPDAJP9
  • Story Text: Italy's government has paved the way for Parmalat to seek quick
    bankruptcy protection while prosecutors widened
    a probe into possible multi-billion-euro fraud at the
    global food group.



    The Italian cabinet approved a decree on Tuesday
    (December 23) providing new norms for companies threatened
    with bankruptcy, a move which should make it easier for
    crisis-hit Parmalat to solve its problems.

    Parmalat, which last week revealed a four billion euro
    ($4.97 billion) hole in its accounts, would like to file for
    controlled administration, a procedure which would give it
    up to two years protection from creditors.

    At a Parmalat distribution centre in Rome, employees
    and customers appear wary and concerned.

    "Everywhere you go, everybody is worried about what's
    happening," said a truckdriver of one of Parmalat's many
    customers.

    Parmalat has 35,000 employees in 30 countries and buys
    up eight percent of the country's milk production.

    Underscoring the high stakes, Prime Minister Silvio
    Berlusconi said over the weekend the government would save
    Parmalat's business and jobs.

    One of Europe's biggest corporate crises exploded last
    week when Parmalat revealed that Bank of America had
    rejected as false a document purporting to certify that
    Bonlat Financing Corp, a Cayman Islands unit of Parmalat,
    held 3.95 billion euros ($4.9 billion) of securities and
    cash.

    Parmalat had a market value of 1.8 billion euros before
    the crisis broke, but its shares are now almost worthless
    and its bonds are trading at barely 20 percent of face
    value.



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