Report: Parmalat Eurofood to be liquidated by Irish accountant

An Italian daily has reported on a Dublin court ruling that Parmalat Finanziaria SpA's Irish unit Eurofood must be liquidated, as requested by the group's creditor Bank of America.

The liquidation is due to be carried out by an Irish accountant.

Reports also say that Parmalat is expected to challenge the decision, stating that Eurofood is under the jurisdiction of the Italian court of Parma because the unit was managed from Italy.

It has also been reported that Bank of America is seeking the liquidation of Parmalat's Cayman-based units Parmalat Capital Finance and Bonlat, claiming that records of money tranfers could create problems for unnamed banks who worked with the Parmalat group.

The Milan-based prosecutor's office, which is investigating market-rigging in the collapse of Parmalat, has asked for Bank of America, the former Italian unit of Grant Thornton, and Deloitte & Touche to be tried.