Beleaguered Italian food conglomerate Parmalat said it will due Bank of America.
The case relates to damages Parmalat will claim over the bank’s involvement in the financial scandal that brought the Italian giant to its knees last year. Parmalat said its administrator intends to request compensation for damages relating to a US$124m credit that Bank of America wanted to swap for Parmalat equity, reported Reuters.
Parmalat said the credit related to deals which magistrates in Italy are investigating as part of a criminal fraud probe into the company’s virtual collapse.
The food group’s administrators have also launched legal proceedings against Deutsche Bank to recover over €300m in fees and bonds issued which the new management team has challenged. As well as taking legal action against banks, Parmalat administrator Enrico Bondi this week turned downapplications by banks and other creditors to convert Parmalat debt worth hundreds of millions of euros into equity.