Parmalat Dairy & Bakery completes refinancing

by Eric Schroeder
Share This:

TORONTO — Parmalat Dairy & Bakery Inc., a subsidiary of Parmalat S.p.A. of Italy, said it has completed C$550 million ($491.6 million) worth of refinancing with a syndicate of lenders led by Bank of Nova Scotia and BNP Paribas. The move is expected to provide a stable capital structure and financial resources for the future.

The announcement comes nearly a year and a half after Parmalat sold its North American Bakery Group to U.S. Catterton Partners, a U.S.-based private equity firm.

Parmalat S.p.A. was declared insolvent in December 2003 amid $18.24 billion in previously undisclosed debt. It owed about $26 billion to creditors, including many big international banks. The parent company began selling non-core global assets to focus on its core businesses of dairy and juice products ahead of a debt-for-equity swap and its re-listing on the Milan stock exchange last fall.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.