Parmalat pledges to repay matured bond

New York, Dec. 11 - Parmalat Finanziaria SpA (CC) asserted that it will repay a €150 million bond issued by Parmalat Finance Corp. that matured on Dec. 8.

Parmalat, a troubled Italian-based international dairy products maker, said the redemption would take place by Dec. 15.

The company had previously said that it had about €4.2 billion of cash or equivalents, more than enough to redeem the matured bonds, although Parmalat was reportedly in emergency talks with bank lenders to obtain funds needed for the bond repayment and to cover operating expenses, leading Standard & Poor's to suggest that it may have misled investors as well as the ratings agency about its financial strength and liquidity adequacy. S&P downgraded Parmalat's €6 billion of debt, which previously carried a BBB- rating, by 11 notches in two downgrades spaced just a day apart.

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