Creditors file winding up proceedings against Parmalat subsidiaries in Cayman court

Thursday, December 25, 2003

NEW YORK, USA: A number of US insurance companies as noteholders of Food Holdings Limited and Dairy Holding Limited, Cayman Islands entities established by Parmalat S.p.A., filed winding up petitions in the Grand Court of the Cayman Islands on Wednesday.

According to a press release issued by the creditors, the notes in question matured earlier this month and neither series has been repaid.

The petitioning creditors have asked the Cayman Islands Court to appoint Joint Provisional Liquidators for the purpose of taking control of the companies and their assets in order to protect the noteholders' secured interests. The claims of the noteholders are said to be guaranteed by Parmalat S.p.A. 

This action by the noteholders was reportedly taken in the light of uncertainties surrounding Parmalat's commencement of proceedings in Italy, as well as the need to protect the assets of the subsidiaries, including their claims against Parmalat Capital Finance Limited, also based in the Cayman Islands. 

In the meantime, reports in the Italian press claim that millions of dollars have been tracked from a Cayman Islands account to another in Luxembourg held by Parmalat founder Calisto Tanzi, the money having been transferred from Epicurum to Satalux, a subsidiary of the Tanzi family's Parma-based Sata company, set up in Luxembourg in December 2002. 

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