ITALY/BRAZIL – Parmalat has retaken control of the day-to-day running of the operations of its Brazilian facility.

This ends an eight-week court intervention, and was the result of an agreement between the judge who ordered the intervention and Parmalat, according to Reuters news agency.

The decision means Parmalat can resume control of the subsidiary, although if it wishes to sell any of the company or move any of its funds elsewhere, it must obtain permission from the court.

The Brazilian subsidiary initially went under state control when its funding was cut off due to the cash crisis at the Italian parent company, which led to a suspension in payments to its suppliers.

Local consultant Nelson Bastos, hired by Parmalat, has been voted by shareholders as president of the Brazilian company.