An advocate general at the European Court of Justice (ECJ) has stated that the liquidation of Parmalat's Irish subsidiary, Eurofood, should be carried out under Irish law.
The view of the advocates-general are not binding on the court, but is followed in most instances.
The issue went to the ECJ because the Irish courts had ruled that the liquidation should go ahead under liquidator Pearse Farrell of Farrell Grant Sparks.
However, the Italian courts have ruled that Eurofood should come under the administration of Parmalat's liquidator, Enrico Bondi.
Parmalat, an Italian food giant that collapsed in 2003 with debts of €14 billion, has said the role of the IFSC-based Eurofood is of fundamental importance to its fraud case against Bank of America.
The food giant's collapse involves complex offshore financing deals in one of the world's largest ever accounting scandals.
Parmalat is seeking to sue Bank of America for up to $10 billion (€8.32 billion) over the collapse, but the bank has denied any wrongdoing. Parmalat is also seeking to sue Citibank and Deloitte and Grant Thornton.
Bank of America backed the argument of Mr Farrell, that the liquidation of Eurofood should take place under Irish law. It claims it is owed more than $3.5 million by Eurofood.
The Irish liquidator argued that Eurofood should be liquidated under Irish law because it is an Irish registered company whose centre of main interest was here.
However, Parmalat argued that the company's centre of main interest was in Italy.
The case is seen as a crucial one in settling matters of law relating to the EU's insolvency regulation, which is meant to simplify cross-border insolvencies.
"Bank of America welcomes today's opinion published by the advocate general of the European Court of Justice which supports the position taken by so many of the parties who participated in the proceedings," the US bank said in a statement.
Eurofood was created by Parmalat's former management in order to provide financing to the group's myriad of companies and was managed by Bank of America.
Its accounts for 2002, drawn up before Parmalat's collapse, showed that Eurofood had been involved in the issuing of bonds in the US worth $180 million, and also in raising funds for Parmalat's operations in Venezuela.
A spokesman for Parmalat has said that Eurofood was deeply involved in matters linked to the alleged fraud at Parmalat and that all its documentation is of interest in terms of getting to the bottom of what occurred.
In the High Court in Dublin, Mr Justice Peter Kelly had ruled that Eurofood's centre of main interests was within this State.
He said the company was subject to supervision by the Department of Finance, the Revenue and the Central Bank of Ireland.
