Are you sure?

Parmalat's suit for damages from banks upheld by Italian court

Italy's constitutional court has upheld the legitimacy of attempts by Parmalat SpA to seek funds from banks that lent it money before the dairy company's 2003 bankruptcy.

The court made the ruling on December 28, Collecchio, Italy-based Parmalat said in a statement distributed by the Italian stock exchange yesterday. Parmalat returned to the stock market in October 2005 after a two-year reorganization under CEO Enrico Bondi.

The company has filed suits seeking over €20 billion ($26.2 billion) in damages from banks that sold €7 billion in bonds for the company before 2003. The ruling upholds the company right to seek damages from lenders including Banco Popolare di Verona e Novara Scrl, Credit Suisse Group's international unit, and Sanpaolo IMI SpA, which became part of the new Intesa Sanpaolo SpA this month. (Bloomberg)