ITALY – Insolvent dairy company Parmalat has moved closer to its planned return to the stock market with the approval of plans to swap debt for equity.

The new plan will give creditors shares equivalent to just 6.9% of their credits – down from the 7.3% the company originally proposed in 2004. Creditors will own around 50 per cent of the new company, which hopes to launch on the Milan stock exchange later in the year.