Case Analysis : Parmalat Spa, A Multinational Italian Dairy And Food Corporation

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Parmalat SpA is a multinational Italian dairy and food corporation that specializes in UHT (Ultra High Temperature) production of long life milk. It was founded by Calisto Tanzi in 1961 and the headquarter is based in Collecchio, Italy. In 2003 the company collapsed with a €14 billion hole in its accounts and it is still considered the Europe’s biggest bankruptcy.

Key Players in the scandal
Calisto Tanzi - 10 year sentence for market rigging, accounting fraud(2009)
Fausto Tonna, CFO - 2 year sentence for forgery, creating many offshore companies
Grant Thornton firm - lawsuits filed dismissed in 2009
Deloitte and Touche firm
BOA - helped Parmalat acquire $170 million; lawsuit filed dismissed in 2009
Citicorp - Parmalat was ordered to pay $364.2 million
Swiss bank UBS - 357.5 million in settlements
Parmalat started in 1961 and by the early 2000s, the small italian company had become a global food empire spanning 30 countries and employing over 35,000 people. For over a year before the scandal exposed, analysts had been expressing doubts about the inordinately high levels of debt the company raised from the market, despite showing high reserves of cash in its financial statements. The company often chooses little known overseas funds to invest in surplus resources. Rumors began spreading around in the financial world about Parmalat’s opaque financial systems and its high levels of debt. Regulatory authority in Italy named Consob also started an inquiry into

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