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.
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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.
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