Parmalat USA gets court OK to pay fees for exit facility due diligence

By Jeff Pines

Washington, Dec. 16 - Parmalat USA Corp. obtained court approval to pay up to $300,000 in fees for due diligence to three potential exit facility lenders.

The reorganization plan calls for Parmalat to be liquidated and for the company to reorganize around its Farmland Dairies LLC subsidiary.

Farmland's post-petition bankers, General Electric Capital Corp. and Citicorp NA, are not among the potential lenders.

At least one of the three potential lenders is expected to provide about $55 million of the $100 million, the company has previously said.

The order was filed with the U.S. Bankruptcy Court for the Southern District of New York Thursday.

Parmalat USA, based in Wallington, N.J., filed for bankruptcy on Feb. 24, 2004. Its Chapter 11 case number is 04-11139.

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