Dec 10, 2004 11:23 AM, from staff and wire reports

Parmalat USA Corp, the Wallington NJ-based unit of Italian dairy company Parmalat Finanziaria SpA, has filed a plan to leave Chapter 11 bankruptcy protection. The plan includes continuing its business in New York and other states and liquidating the remainder of its assets.

As part of the proposal, creditor General Electric Capital Corp would receive an 80% share in Farmland Dairies, a Parmalat USA subsidiary. Farmland, which sells milk in New York, New Jersey, and Michigan, will be the only remaining asset if the bankruptcy plan gains approval. About two-thirds of the creditors have to vote for the plan before a court can consider it for approval.

In February 2004, Parmalat USA sought bankruptcy protection. Two months earlier, Milan, Italy-based Parmalat Finanziaria had sought bankruptcy protection after it couldn’t account for about $11.4 billion it claimed to have on its books.