A significant move in the recovery plan for the crisis-hit Italian food group, Parmalat, takes place in the High Court in Dublin tomorrow when an adjourned hearing into the appointment of a liquidator to Eurofood IFSC takes place.
Plans for the group being worked out by Parmalat's administrator Mr Enrico Bondi are being complicated by the challenge he faces in keeping control over Parmalat's sprawling assets around the globe.
Bank of America has sought the appointment of Mr Pearse Farrell as liquidator to the Irish subsidiary, Eurofood, but the plan is being resisted by Mr Bondi.
Two weeks ago he had a Dutch subsidiary placed under Italian jurisdiction, ahead of an attempt by UBS to put it under a Dutch court's authority.
In January, Mr Farrell was appointed as provisional liquidator on the application of Bank of America, which claims to be a creditor of Eurofood for some three million dollars.
Bank of America argued that as Eurofood was incorporated in this jurisdiction and had been administered in this jurisdiction throughout its existence, it would seem more appropriate for the winding up of the company to take place here.
Subsequently, counsel for Mr Bondi told the court that Mr Bond's task was to try to restructure Parmalat in what was more akin to the examinership process here than a winding-up.
A key issue now is whether control over Eurofood is to be exercised in Dublin or in Parma, Italy. A court in Parma ruled last week that Eurofood should be placed under Italian control as it had no operative function outside Italy.
Mr Bondi effectively lost control over Parmalat Brasil last month when a Sao Paolo court appointed a local team to manage the subsidiary.
Investigating magistrates in Milan have compiled a preliminary list of 26 people alleged to have been involved in market manipulation in connection with Parmalat. The list includes senior Parmalat executives as well as four employees of auditing firms Deloitte & Touche and Grant Thornton.
Italian Industry Minister Mr Antonio Marzano said at the weekend that he expects to see Mr Bondi's plans for Parmalat within days.
Parmalat filed for bankruptcy protection from creditors and was declared insolvent in December after it had unveiled a €4 billion gap in its accounts. Its debts have since been revealed to be €14.5 billion.
Mr Bondi was charged with preparing a rescue plan for what was once Italy's eighth biggest industrial group.
