Parmalat USA agrees to appointment of examiner

By Jeff Pines

Washington, May 28 - Parmalat USA Corp. agreed to the appointment of an examiner to look into how the company got into bankruptcy in the first place given the checkered past of its Italian parent.

The initiative for appointing an examiner came from Friendship Dairies Inc. and Perry's Ice Cream Inc., both of whom are creditors. Friendship has claims of about $15,000 and Perry's of about $330,000.

They want to know how the Italian parent's problems and alleged financial misconduct affect Parmalat USA and were Parmalat USA assets transferred to support the Italian parent.

The examiner will investigate whether claims against the company and against third parties are being "pursued in a disinterested manner," according to the proposed order.

The court is giving the examiner two weeks to interview company officials and creditor committee members, their staff and advisers, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A budget of $5,000 will be authorized, and the examiner will not be able to retain any professionals.

Unless there are any objections, a proposed order will be presented to the judge on June 3.

Parmalat USA filed for bankruptcy on Feb. 24. Its Chapter 11 case number is 04-11139.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.