Parmalat USA asks court to extend exclusive period by 60 days

By Jeff Pines

Washington, Sept. 24 - Pamalat USA Corp. asked the U.S. Bankruptcy Court for the Southern District of New York to extend its exclusive right to file a reorganization plan to Nov. 29 from Sept. 28 and to extend its exclusive right to solicit votes to Jan. 27 from Nov. 27.

Parmalat filed the request with the court Thursday.

The next omnibus hearing is scheduled for Oct. 6, so the dairy company asked the court to give it a bridge order extending the exclusive period to file a plan until the hearing.

The company described its negotiations with its creditor's committee and its debtor-in-possession lender General Electric Capital Corp. as being at a sensitive stage and that it needs more time to "enable these negotiations to come to fruition."

General Electric supports the extension, Parmalat noted.

In May, Parmalat's management decided to reorganize the company instead of liquidating its assets.

Parmalat filed for bankruptcy on Feb. 24, 2004. Its Chapter 11 case number is 04-11139.

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