Troubled Italian food giant Parmalat has unveiled a plan to get rid of some of its debt by paying creditors much less than expected, as the company struggles to survive after a massive financial scandal.

Parmalat’s creditors had hoped the company would pay back around 15% of their money as part of its restructuring plan, but under the new plan most creditors will receive less than 12% of their money, reported Reuters.

Government-appointed administrator Enrico Bondi has said the company will convert €1.9bn (US$2.4bn) of its debt into shares in a new restructured company. Bondi has already announced plans to sell off many of the company’s international units in order to enable the new company to focus on its core operations.

The restructuring plan has to be approved by the Italian industry ministry and Parmalat’s creditors. Creditors are likely to approve the plan due to the lack of an alternative, reported Reuters.

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