Emergency meeting planned at Parma
MILAN, Italy (Reuters) -- Administrators at Parmalat are hoping to hold a meeting of Parma shareholders following the collapse of the food group that owns the Serie A side, a source close to the club said on Monday.
Parma, currently sixth in Serie A, are struggling to find funds to cover losses of $97.60 million and avoid liquidation.
"They are looking at solutions to see if the shareholders meeting can go ahead on January 9 as expected," the source told Reuters.
Parmalat was declared insolvent last week in one of the biggest ever corporate scandals and is now under the administration of turnaround expert Enrico Bondi.
Parma had intended to tap shareholders for a capital increase but that plan has now collapsed.
Parma's Managing Director, Patrick Nebiolo, said last week an alternative rescue plan might involve Parmalat waiving debts owed by the club and said new shareholders might come forward to take a stake.
The chairman of the club, Stefano Tanzi -- son of Parmalat's founder Calisto Tanzi -- is expected to quit at the meeting.
Calisto Tanzi has been arrested along with seven other people as investigators try to track billions of euros missing from the accounts of Parmalat, known worldwide for its dairy products.
Parma was one of Italy's leading teams in the 1990s, winning two UEFA Cups, helped by generous financing from Parmalat.
Rome-based Serie A club Lazio was also pushed deep into financial crisis last year by the collapse of another Italian food group, Cirio, which was controlled by Lazio's top shareholder, entrepreneur Sergio Cragnotti.
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