Parmalat to sell US interests only
Parmalat Finanziaria SpA has begun proceedings to sell its US interests, but has decided to keep its Australian, Canadian and South African businesses, according to unsourced Italian news reports.
The paper also said the company's re-launch plan, outlined yesterday to the Industry Minister Antonio Marzano by Parmalat's administrator Enrico Bondi, said it expects a profit margin of 3.5% in 2006, which is expected to rise later to 8-12%.
Parmalat is also expected to convert debt into equity.
In the meeting Marzano promised to rapidly set up a legal framework for the constitution of Parmalat's creditor committee.
Last month, Marzano said the committee will include four Italian banks, four foreign banks and a representative for bondholders.
The report also said that the launch of Parmalat's rescue plan was hindered by the delay in setting up the creditor committee because the administrator wants the support of creditors.
