Parmalat facing battle for survival

ITALY’S biggest food company, Parmalat Finanziaria, may seek bankruptcy protection from creditors this week after the disclosure that a $4.9 billion bank account didn’t exist.

Bonds sold by the maker of Archway cookies and Pomi pasta sauces are trading at as little as 20% of face value, suggesting investors don’t expect to get paid in full. Parmalat, which had an investment grade rating from Standard & Poor’s at the start of the month, is now rated at D, or default status.

“Filing for bankruptcy protection is the way forward to guarantee that the company continues operating,’ said Gianni Bizzarri, chairman of Ifigest Fiduciaria Sim, a fund manager.