Parmalat Finanziaria provides creditors with estimated recoveries

By Jeff Pines

Washington, July 14 - Parmalat Finanziaria SpA provided estimated recoveries for the unsecured debt of itself and 15 of its subsidiary companies in bankruptcy.

It noted the estimated recoveries are not final.

The proposed plan calls for some creditors to be repaid in cash and some in shares of the reorganized company along with warrants to buy up to 500 shares depending upon the size of the claim.

Creditors of Parmalat SpA will get an estimated 47.9% of the reorganized company's shares, and creditors of Eurolat SpA will get an estimated 16.2% stake.

The estimated recoveries, and footnotes, courtesy of Parmalat Finanziaria, are shown in Table 1.

Under an example provided by the company, someone holding a €1,000 note sold by Parmalat Capital Netherland BV would actually get an estimated 11.3% recovery since its bonds were guaranteed by Parmalat Finanziaria. The recovery would consist of 113 shares and warrants to buy 113 shares.

Parmalat filed for bankruptcy on Dec. 24, 2003.

Table 1: Estimated recoveries for Parmalat and subsidiaries

Company Estimated Recovery

1. Parmalat Finanziaria SpA 11.3%

2. Parmalat SpA 7.3%

3. Centro Latte Centallo Srl 100.0%

4. Contal Srl 17.2%

5. Eurolat SpA 100.0%

6. Parmengineering Srl 76.1%

7. Geslat Srl 19.9%

8. Lactis Spa 100.0%

9. Newco Srl 100.0%

10. Panna Elena CPC Srl 100.0%

11. Olex SA 100.0%

12. Parmalat Soparfi SA (1) 26.9%

13. Dairies Holding International BV 100.0%

14. Parmalat Capital Netherlands BV (2) 0.0%

15. Parmalat Finance Corp. BV (1) 4.6%

16. Parmalat Netherlands BV (3) 2.3%

(1) Issuers of bonds with Parmalat SpA guarantee. Under the guarantee, creditors will receive recovery ratios from both issuer and guarantor (except Parmalat Soparfi's bond due 2032 which has a subordinated guarantee from Parmalat SpA).

(2) Issuer of bonds with Parmalat Finanziaria SpA guarantee. Under the guarantee, creditors will receive recovery ratios from both issuer and guarantor.

(3) Issuer of (i) bonds with Parmalat Finanziaria SpA and Parmalat SpA guarantees. Under the guarantees, creditors will receive recovery ratios from issuer and guarantors; and (ii) private placements with Parmalat SpA guarantee. Under the guarantee, creditors will receive recovery ratios from issuer and guarantor.

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