Factoring companies that supplied working capital finance to subsidiaries of Parmalat will receive nothing in compensation, according to Enrico Bondi, the government-appointed administrator of the failed Italian dairy group.
Bondi has rejected requests from factoring companies such as GE Commercial Finance to be put on the list of Parmalat's creditors. Such demands have been turned down on the grounds that they concern ‘non-existent credit’. Italian banks, on the other hand, will be reimbursed for what Bondi has called ‘normal banking activities’ but not for factoring or surety-bond operations.
The Parmalat administrator has also rejected reimbursement requests from foreign banks Morgan Stanley (Ђ35.5m), JP Morgan ($80.72m) and Merrill Lynch (Ђ25.72m).
Source: Il Sole 24 Ore
