Parmalat USA obtains final order for post-petition financing

By Jeff Pines

Washington, March 30 - Parmalat USA Corp. obtained final court approval for its $35 million debtor-in-possession financing, according to a March 30 court order filed with the U.S. Bankruptcy Court for the Southern District of New York.

Along with the facility, the order authorizes the use of cash collateral. However, cash collateral may only be used to pay the operating expenses of its Farmland and Milk Products subsidiaries, pay its obligations to Citibank NA under the receivables purchase agreement and to pay permitted expenses above $25,000.

Parmalat USA filed for Chapter 11 on Feb. 24 after scandals rocked its Italian parent.

Parmalat's Chapter 11 case number is 04-11139.

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