A bankruptcy hearing for Cirio Finanziaria, the holding company of pasta sauce maker Cirio, is reported to have been delayed for the second time and will now take place on 18 June.

A group of bondholders has asked a Rome court to declare the company bankrupt, but Cirio instead has proposed a debt-to-equity swap that would result in most bondholders losing most of their money. Cirio bondholders are due to meet to approve the swap plan in mid-July.

Under the terms of the swap plan, bondholders will be given the chance to swap their bonds for newly issued shares.

“Cirio’s restructuring plan is not convincing at all because it doesn’t foresee any repayment prospect for bondholders,” Gino Bosco, the lawyer who filed the bankruptcy request, was quoted by Dow Jones International News as saying.