Parmalat files for bankruptcy

Published: 25 December 2003 y., Thursday
Italy's embattled food maker Parmalat has filed for bankruptcy protection. As one of Europe's biggest corporate scandals deepened, the company's former chairman Calisto Tanzi and his son left the country. Judicial sources rebuffed speculation they had fled prosecutors. Parmalat's rescue managers will take advantage of an emergency government decree, which introduces fast-track protection from creditors. The company's simmering crisis boiled over last week when a four billion euro hole was uncovered in the finances of one of the group's units. The multinational's shortfall is now estimated at at least seven billion euros. All eyes are now on new boss Enrico Bondi. He will be given extra powers by a government decree to come up with a restructuring and recovery plan within 180 days. That is likely to involve selling assets to save core operations. The scandal has put the the spotlight on Parmalat's partners, including some of the world's best-known banks and auditing firms.
Šaltinis: euronews.net
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Bumpy future road for Europe's car makers discussed

The future of Europe's troubled car market and 12 million jobs was under scrutiny Tuesday. more »

Gordon Brown: EU must take the lead in reforming global financial institutions

Europe must take the lead in finding solutions to the global crisis at next week's G20 summit, British prime minister Gordon Brown told MEPs in a speech in Strasbourg on Tuesday that was warmly welcomed by leaders of the main political groups. more »

How much should we tame financial markets?

The US and Europe are in the worst economic crisis since the 1930s. With unemployment rising dramatically and businesses failing, fear is spreading. more »

Food prices debated amid concerns over supermarket domination

Monday evening sees MEPs consider the emotive subject of food prices in Europe. more »

Wincor Nixdorf share price drops, company announces production cuts

Shares in Wincor Nixdorf AG have fallen 3.5 percent and the ATM company says it is preparing to cut production hours. more »

EU leaders confident and determined in face of economic crisis

Leaders agreed to use €5bn in unspent EU funds to upgrade energy and internet connections. And they raised the ceiling on EU aid to countries having difficulties. more »

Parliament backs “polluter pays” principle for lorry charges

Charges on heavy-goods vehicles should be based in part on the air and noise pollution they produce, according to legislation approved by the European Parliament today. more »

EU officials down on the farm

EU agriculture officials are about to get a reality check. Starting next year, their on-the-job training will include a stint on a working farm. more »

Sacred cows to the slaughter? Are the rules changing in the European economy?

Privatisation, balanced budgets, low public deficits, and free trade have long been the mantra for prudent economic management. more »

Where should we invest our money?

Building roads and pipelines, ensuring food safety, improving education, fighting discrimination and boosting jobs are all funded from the EU budget. more »