Chilean private equity group Bethia has been given the go-ahead from creditors to buy the local unit of beleaguered Italian dairy giant Parmalat.

Bethia said it would pay US$15.5m for Parmalat Chile. Creditor banks and farmers approved the deal yesterday [Monday], reported Reuters. Over nine out of ten creditors approved the acquisition, with two banks, Banco do Brasil and Banco Security, voting against.

Parmalat has been selling off assets in Asia, Latin America and the US as part of a large-scale turnaround plan following revelations of a financial scandal that dates back over a decade.

The deal will see Bethia assume Parmalat’s debts to dairy farmers and 31% of its bank debt. Parmalat Chile reported turnover worth $45m last year.