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Parmalat, Intesa Sanpaolo reach out-of-court settlement

Parmalat, Intesa Sanpaolo reach out-of-court settlement

Italian bank Intesa Sanpaolo SpA and Parmalat SpA said Saturday they had reached an out-of-court deal to end all pending lawsuits in the biggest settlement so far over the dairy company's collapse fours years ago.
According to a joint statement, Intesa Sanpaolo agreed to pay Parmalat a total of euro396 million (US$569.4 million) to end all claims. The bank will pay a further euro24 million (US$34.5 million) to former Parmalat companies under special administration.
In a separate statement, Intesa Sanpaolo insisted it had been "absolutely fair in its behavior and totally unaware of the Parmalat state of insolvency." It said it had reached the settlement "only to avoid uncertainties which arise, as a matter of fact, from the involvement in a long-lasting and very complex litigation while also considering the related heavy administrative costs."
Parmalat collapsed at the end of 2003 under about euro14 billion of debt. The collapse was Europe's largest corporate scandal.
After a two-year reorganization and a relisting in 2005, the new Parmalat headed by Chief Executive Enrico Bondi is on a yearlong crusade to recoup billions of euros from banks in settlements, clawbacks and lawsuits, which have so far poured hundreds of millions of euros into the company's coffers.
Saturday's settlement brings Parmalat's recoveries to date to about euro1.2 billion (US$1.73 billion). Parmalat is also seeking damages in the U.S. from Bank of America and Citigroup, among others.


Updated : 2020-12-02 17:44 GMT+08:00