Parmalat USA gets extension to March 25 to file a reorganization plan

By Jeff Pines

Washington, Jan. 12 - Parmalat USA Corp. obtained extensions to its exclusive right to file a reorganization plan and its exclusive right to solicit votes for its plan.

According to an order filed with the U.S. Bankruptcy Court for the Southern District of New York, Parmalat will have until March 25 to file a plan and until May 24 to solicit votes for the plan. The previous exclusive period to file a plan ended Jan. 22 and the solicitation period on March 28.

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

In paperwork previously filed with the court, Parmalat said it believed its creditors will support the reorganization plan, but if the disclosure statement or the plan were not approved or the hearings adjourned the company's exclusivity would have expired in the interim.

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

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

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