Judicial and arbitration proceedings
On December 24, 2003 the old Parmalat S.p.A. – a different legal entity from the current Parmalat S.p.A. – was admitted to the Extraordinary Administration procedure.
Parmalat S.p.A. was declared insolvent on 27 December 2003. The Extraordinary Administration procedure was broadened to other companies of the Group under E.A.
On October 1, 2005, by virtue of the Composition with Creditors approval, the assets and liabilities of the 16 companies included in the Composition have been transferred to the new Parmalat Group.
The new Parmalat Group is therefore party to various civil and administrative court proceedings, both as plaintiff and as defendant, concerning the situation that lead the old Parmalat S.p.A. and its subsidiaries close to bankruptcy.
To the best of the management knowledge, except as described in the Overview below, there are no other judicial, arbitral or administrative proceedings that could have a material negative effect on the assets, the financial situation or the results of the Group. It should be noted that, except for the cases explicitly indicated, no amounts have been set aside as risk fund, absent certain and objective elements and/or considering the unlikelihood of a negative outcome of the litigation.
Parmalat provides detailed information about Legal Issues in the annual report and the first half report and an update in the quarterly reports. Please see the following documents: