The founder of Italian dairy giant, Parmalat has been named as one of the subjects of a fraud probe into the company, following the revelation that its Cayman Island-based subsidiary, Bonlat Financing Corp lied about the existence of a EUR3.9 billion bank account with Bank Of America.
The Italian firm was already buckling under the weight of around EUR6 billion in debts, but was pushed over the edge by the announcement that the EUR3.9 billion in assets held by Bonlat were, in fact, fictitious.
The Parmalat board met yesterday to discuss its impending bankruptcy filing.
According to a Wall Street Journal report, in addition to founder and former chief executive, Calisto Tanzi, two former chief financial officers, Luciano Del Soldato and Alberto Ferraris were also placed under investigation.
A number of Italy's biggest banks are exposed to Parmalat, a situation which has created concern within the financial sector, and led Italian Economy Minister, Giulio Tremonti to describe the crisis as "Europe's Enron".
.Tags: Italy
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