Parmalat USA does not need 120-day extension, Citibank says

By Jeff Pines

Washington, June 18 - Parmalat USA does not need a 120-day extension to its exclusivity periods, Citibank NA London Branch said. Instead the court should give it a 45-day extension, the bank said in a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Parmalat's exclusive period to file a reorganization plan ends June 23, but the company has asked for an extension until Oct. 21. A 45-day extension would take the company to Aug. 9.

Originally, Parmalat USA had planned to sell its assets, but recently management changed course and decided to reorganize itself.

Even so, Citibank said it has a commitment to buy receivable interests from Parmalat USA and the commitment expires Aug. 23. The bank said it has no interest in extending its commitment. It agreed to the commitment because it was told the commitment would be only for six months.

If the new deadline is set for Aug. 9, Citibank would have more information on which to base whether it should support further extensions for Parmalat USA.

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

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