Troubled Italian food group Parmalat has unveiled its recovery plan, which will involve swapping debt for equity and selling non-core assets.
Parmalat, which filed for bankruptcy after revealing a multi-billion-euro hole in its accounts in December, said a final version of the recovery plan would be completed by May or June, reported Reuters.
The company, which currently being run by a government-appointed administrator, said it plans to focus on 30 core brands in a bid to become a leaner, more competitive company. It also plans to focus on health foods and markets where it can charge premium prices.
Parmalat said it plans to keep its strongest local brands, such as Pauls in Australia, Astro and Lactantia in Canada, Bonnita in South Africa, Clesa and Cacaolat in Spain and La Campina in Venezuela, as well as its Berna, Lactis and Central Latte Roma brands in its main market of Italy. The company also plans to maintain its global Parmalat and Santal brands.
However, a fire sale of the company’s non-core brands is not expected, Reuters reported, citing sources close to the business.