Parmalat Dairy & Bakery completes refinancing

by Eric Schroeder
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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.

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