A court hearing of a request from bondholders of pasta sauce maker Cirio Finanziaria that the company be declared bankrupt is to take place on 11 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, reported Dow Jones International News.