Italian food group Parmalat has said it has failed to recover a US$590m investment in an offshore fund, leading to concerns that the company may not be able to raise enough cash to pay off debts.

The sale of the stake in the Epicurum fund had been expected last week, but Parmalat said the payment had been delayed as the fund faced a cash problem, reported Reuters.

Parmalat has several payments to make in the coming weeks, including €150m (US$183.8m) in bonds due this week, and $400m that it needs to pay to a group of investors that have exercised an option to sell 18% of Parmalat’s Brazilian operations back to the Italian firm.

Meanwhile, Parmalat has hired Deutsche Bank to sell its US bakery business and carry out a strategic review of the group, Reuters reported, citing sources.

The US bakery business includes brands such as Mother’s Cake and Archway cookies, and could raise around €350m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData