Parmalat founder Tanzi drawn into Italian fraud investigation
Tuesday 23 December 2003
The crisis at Parmalat that is widely expected to force the troubled Italian food group to file for bankruptcy protection deepened yesterday as rumours circulated that its founder, Calisto Tanzi, and other executives had been dragged into an inquiry into suspected fraud at the business.
Mr Tanzi and two former finance directors, Alberto Ferraris and Luciano Del Soldato, were cited as part of an investigation into possible false accounting and fraud.
Parmalat, which is already being labelled "Europe's Enron", last week admitted to a near €4bn black hole in its accounts although it is feared it could be even larger. Mr Tanzi was quoted in an Italian newspaper as saying that a €3bn bond repayment, detailed in its accounts to the end of September, had not in fact taken place. The Milan-based company, set up by Mr Tanzi in 1961, makes a variety of foods, from dairy products - including Loseley ice cream - to soups, canned vegetables and biscuits and savoury snacks. It employs about 35,000 people in 30 countries.
Under the turnaround specialist Enrico Bondi, who was appointed chairman only last week, Parmalat is expected to file for bankruptcy protection although the Italian government may intervene to help.
Mr Bondi and his team were yesterday locked in talks with their advisers on how best to keep the operation afloat. Parmalat's board is due to meet this afternoon while Italy's cabinet is also planning to discuss the matter today.
Sources speculated last night that the Italian government was looking at proposing an "innovative solution" that would facilitate a more flexible Chapter 11 bankrupty protection style structure for Parmalat. Parmalat also said yesterday that negotiations, aimed at delaying the exercise of an option that will force it to buy a $400m stake in its Brazilian unit, were still ongoing.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
16 Waitrose customers who could not cope with the end of free coffee
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...