Parmalat USA asks court to extend exclusivity

By Jeff Pines

Washington, Dec. 28 - Parmalat USA Corp. asked the bankruptcy court to extend its exclusive right to file a reorganization plan to March 25 and its exclusive right to solicit votes for the plan to May 24.

The company filed the request Dec. 27 with the U.S. Bankruptcy Court for the Southern District of New York.

Parmalat's reorganization plan calls for liquidating Parmalat and its Milk Products of Alabama subsidiary and reorganizing around its subsidiary, Farmland Dairies LLC.

Parmalat said it believes its creditors will support the reorganization plan, but if the disclosure statement or the plan are not approved or the hearings are adjourned, the company's exclusivity will expire in the interim.

The current exclusive period to file a plan ends Jan. 22, and the solicitation period ends on March 28.

The hearing on Parmalat's disclosure statement and the extension is scheduled for Jan. 12.

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

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