Parmalat pleads for protection of US assets

Scandal-plagued Italian supermarket group Parmalat Finanziaria SpA has requested an injunction from a United States bankruptcy judge to stop creditors from taking its US assets as the organization restructures.

Parmalat and 22 affiliates made their request to Judge Robert Drain of the bankruptcy court in Manhattan under Section 304 of the US Bankruptcy Code. The plea comes half a year after the group filed for insolvency in Italy and four months after its US dairy units sought Chapter 11 bankruptcy protection. The organization has debt of about 14 billion euros (US $16.9 billion).

A recovery plan was submitted June 21 by Parmalat to Italian Industry Minister Antonio Marzano, and approval of the plan might occur by early July. Marzano said the plan, drawn up by Parmalat administrator Enrico Bondi, projects that the group will again be profitable in 2005.