A court in Italy has declared Serie A football club Parma bankrupt, but has said the former Italian giant will be allowed to see out the remainder of this season despite debts of €75m (US$81.9m, £54m).

New club chair, Giampietro Manenti, promised to clear the club's debts when he took control last month, but was arrested last week following accusations of being involved in a credit card scam.

The Italian Serie A league has allocated Parma €5m (US$5.4m, £3.6m) so that the club – currently bottom of the league – can complete the season’s remaining fixtures.

Following a scheduled hearing regarding the club’s future, club official, Osvaldo Riccobene, said: "The club's creditors called for bankruptcy, which was accepted by the prosecutor."

Parma has been struggling financially for all of the season. The top-flight players have not been paid this campaign, while also having to do their own laundry, drive the team bus and have cold showers because the club cannot pay for hot water.

Previously, Parma were runners up in Serie A in 1997 and won the UEFA Cup in both 1995 and 1996, also claiming the 1993 Cup Winners’ Cup.