The Brazilian unit of troubled Italian food group Parmalat has halted more than half of its production lines due to its financial difficulties.


Parmalat Brasil Industria de Alimentos filed for bankruptcy protection last week as it had difficulties paying suppliers and creditors amid the current financial crisis at its Italian parent.


“Parmalat’s Brazil operations are fast approaching a make or break decision point,” a source told Reuters. “The current legal context severely restricts their ability to gain protection from creditors while a rescue plan is devised.”  


Parmalat Brasil’s press office told Reuters it had suspended 60% of its production lines and that its output was varying due to inconsistent deliveries from suppliers.

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