ITALY – As the fight to save Parmalat continues, the Italian government on Monday replaced the 60-day payment scheme for domestic milk suppliers with seven-day payments, in an effort to maintain good faith.

The 7-day payment scheme will run for 45 days, after which time it will be reassessed. It is thought that by this time some decision will be made as to the company’s future, with suppliers either giving their backing or pulling out.

Dutch markets regulator AFM has also become embroiled in the case, and announced that it was investigating share and bond issues by one of Parmalat’s Dutch-registered units, although it did not identify which one.

Tetra Pak has also denied accusations that it made illegal payments directly to the Tanzi family or any other individuals at Parmalat.

It is providing documentation of payments to Parmalat to the Italian authorities in order to disprove any such claims. It said that all discount payments were sent to companies as directed by Parmalat.