June 13, 2008 / 6:43 PM / 11 years ago

Parmalat, Credit Suisse, UBS settle dispute

MILAN, June 13 (Reuters) - Italian food group Parmalat (PLT.MI) on Friday said it settled all its legal disputes with Credit Suisse CSGN.VX and UBS UBSN.VX stemming from Parmalat’s collapse in 2003.

As part of the settlements, UBS will pay Parmalat 184 million euros ($282.1 million) and Credit Suisse will pay 172.5 million euros to the Italian dairy group.

Parmalat is involved in dozens of legal cases in Italy and the United States. Its chief executive, turnaround specialist Enrico Bondi, has accused some 50 defendants of helping prior Parmalat management hide debt and inflate results.

Parmalat, often dubbed “Europe’s Enron,” collapsed under about 14 billion euros of debt after uncovering a 4 billion euro hole in its accounts. It has restructured and relisted its shares on the Milan stock exchange.

In March, 56 defendants went on trial in Parma, Italy, in a case that could run for years. Parmalat founder Calisto Tanzi and former chief financial officer Fausto Tonna are among those who face charges including criminal conspiracy. They have denied any wrongdoing.

Reporting by Mathias Wildt, editing by Leslie Gevirtz

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