The Hungarian unit of troubled Italian food group Parmalat is reportedly planning to file for bankruptcy protection.

Parmalat Hungary held an extraordinary general meeting in order to make its decision, reported Interfax.

Managing director Cristiano Villani said the move was necessary to enable the company to continue its operations and protect its assets.

A group of suppliers to Parmalat Hungary recently announced their intention to file liquidation proceedings against the company in order to collect HUF490m (US$2.3m) owed to them by Parmalat Hungary, Interfax said. The company reportedly owes more than HUF700m to suppliers.