Newsline: Parmalat Meltdown Reaches U.S.
Parmalat USA Corp., a unit of the troubled Italian dairy company Parmalat Finanziaria SpA, filed for bankruptcy-court protection from creditors late last month, listing assets and debts of at least $100 million U.S. each.
The U.S. shockwaves came less than two weeks after the son and daughter of Parmalat's founder were arrested by Italian authorities, who say they siphoned more than $900 million from the global dairy giant before its December collapse.
In all, 15 people have been jailed and four put under house arrest since a criminal investigation began in December. Parmalat imploded under $18 billion in debt. Also last month, Parmalat's Brazilian subsidiary announced that it was suspending operations at several of its plants due to a supply shortage and difficulties in securing credit.
Parmalat Canada, meanwhile said it won't be affected by the U.S. bankruptcy filing.