Italian Bankruptcy Laws Changed In Parmalat Rescue Attempt
It emerged this week that the Italian government has issued an emergency decree
amending the country's bankruptcy laws, in an attempt to save ailing dairy giant,
Parmalat, from being broken up by its creditors. The firm, which has annual sales of $9 billion from its dairy and juice products,
was thrown into crisis earlier this month, when it was forced to admit that
$4.9 billion of its assets supposedly held in Cayman Islands funds had gone
missing. Since then the hole in its balance sheet has widened to more than $12 billion
after what the Italian police say is 15 years of false accounting. According to reports, it is hoped that the move will afford the firm similar
protections from its creditors to those permitted under US Chapter 11 bankruptcy
rules. .
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