Court-appointed administrators yesterday took over the management of Parmalat's Brazilian unit in an effort to save one of the group's largest overseas operations from bankruptcy.

Amid growing investigations into alleged illegal bank transfers by Parmalat, a Sao Paulo court opened the bank records of all Parmalat Brasil directors to scrutiny and barred executives from leaving the country without express judicial permission.

The court also froze the company's bank accounts and appointed Mr Keyler Carvalho Rocha, a former central bank director, as head administrator.

"We need to restructure, clean up and revitalise the company," said Mr Carlos Alberto Casseb, one of the newly appointed directors. "With the plants halted, bankruptcy would be certain."

He said there were prospects of clenching a bridge loan of between 70 million Brazilian real (€19 million) and R$80 million to keep the company afloat.

Parmalat Brasil, which last year accounted for as much as one-sixth of the group's total revenues, filed for bankruptcy protection last month following creditor demands.

Due to supply shortages and a cash crunch, two of its eight plants have shut down completely and the remainder are operating at less than half capacity.

Following testimony by company executives this week, members of an inquiry by congress said the various companies of the Parmalat group in Brazil could owe as much as $2.4 billion (€1.87 billion), compared with initial estimates of $1.8 billion.

Parmalat Brasil, the operating unit, has debt of only $160 million.

Yet according to committee members, the holding company owed $1.6 billion and Carital, a subsidiary used for publicity and sporting sponsorship, had liabilities of $670 million.