Report: Parmalat May Keep U.S. Units
NEW YORK - Bankrupt dairy group Parmalat SpA may now decide to hold onto its U.S. operations instead of selling them off, since bids for the units so far have been lower than expected, according to a Reuters report.
In late February Parmalat put its three U.S. dairy units -- Farmland Dairies LLC, its parent Parmalat USA Corp. and a subsidiary, Milk Products of Alabama -- on the block as part of a Chapter 11 bankruptcy filing in New York.
Since that time the company has received interest from a handful of companies, including Dean Foods, but sources told Reuters that no offer is generating great enough interest.
While the assets are not off the block, the company and its creditors may opt for a stand-alone plan rather than a sale, sources said.
The units lost $12.5 million last year on sales of $577.5 million, according to court filings cited by Reuters.
In late February Parmalat put its three U.S. dairy units -- Farmland Dairies LLC, its parent Parmalat USA Corp. and a subsidiary, Milk Products of Alabama -- on the block as part of a Chapter 11 bankruptcy filing in New York.
Since that time the company has received interest from a handful of companies, including Dean Foods, but sources told Reuters that no offer is generating great enough interest.
While the assets are not off the block, the company and its creditors may opt for a stand-alone plan rather than a sale, sources said.
The units lost $12.5 million last year on sales of $577.5 million, according to court filings cited by Reuters.