Citigroup challenges Parmalat rescue plan
Reuters, Milan
Citigroup has launched a legal challenge against a restructuring plan drawn up by bankrupt food group Parmalat, saying it is unfair to some creditors.Citigroup said in a statement on Friday that the Italian government, which is overseeing Parmalat's administration, had "failed to ensure a fair process for considering claims". In July, Parmalat's administrators launched a suit against Citigroup for $10 billion (6 billion pounds) in damages over its dealings with the company before it went bankrupt. The administrators have excluded more than 500 million euros (344 million pounds) of Citigroup credits from a planned debt-for-equity swap, a key part of Parmalat's rescue plan.
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