Parmalat settles claims with banks

MILAN – Italian dairy group Parmalat has settled claims with three banks including Merrill Lynch for a total of US$96,5 million, bringing to a close some of the lawsuits linked to its 2003 collapse under massive debt.

Parmalat, which has since restructured and relisted on the Milan bourse, said in a statement yesterday it had settled all outstanding damage claims with Merrill Lynch for 29 million euros. It said it had also settled revocatory claims for 35 million euros with Italy’s Banca Monte Parma and 8 million euros with ING of the Netherlands.Monte Parma had “further undertaken to forego the right to file claims with the Parmalat bankruptcy court for a value equivalent to that returned in settlement of the revocatory action,” it said.Parmalat is Italy’s biggest listed food company.Parmalat is suing a number of other banks as a result of its collapse when it discovered a multi-billion euro hole on its books.In another case, a Milan judge has ordered four other foreign banks including Citigroup to stand trial in January for alleged market-rigging in connection with Parmalat’s collapse, according to judicial sources.Citigroup and the other banks deny wrongdoing.Nampa-ReutersIt said it had also settled revocatory claims for 35 million euros with Italy’s Banca Monte Parma and 8 million euros with ING of the Netherlands.Monte Parma had “further undertaken to forego the right to file claims with the Parmalat bankruptcy court for a value equivalent to that returned in settlement of the revocatory action,” it said.Parmalat is Italy’s biggest listed food company.Parmalat is suing a number of other banks as a result of its collapse when it discovered a multi-billion euro hole on its books.In another case, a Milan judge has ordered four other foreign banks including Citigroup to stand trial in January for alleged market-rigging in connection with Parmalat’s collapse, according to judicial sources.Citigroup and the other banks deny wrongdoing.Nampa-Reuters