Article: Key Parmalat Units File for Bankruptcy

ALAN CLENDENNING, AP Business Writer
AP Online
01-28-2004
Dateline: SAO PAULO, Brazil
Two key Brazilian units of fallen Italian food and dairy giant Parmalat filed for bankruptcy protection Wednesday in a bid to keep the company afloat amid growing pressure to pay its debts.

Parmalat's Brazilian operations owe up to $1.8 billion. The dairy division that filed for bankruptcy protection, Parmalat Brasil Industria de Alimentos SA, accounts for about $160 million of that debt.

Parmalat Brasil's local parent company, Parmalat Participacoes do Brasil Ltda., also filed for bankruptcy but it was not immediately clear how much of the overall debt it holds.

The dairy unit has been struggling to make ...

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