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Article: Parmalat : How much did the bankers know? The collapsed dairy giant was kept afloat by a series of fund raisings, so regulators are delving into the role of US and Italian banks and founder Calisto Tanzi. Edward Simpkins reports
- Article from:
- The Sunday Telegraph London
- Article date:
- January 4, 2004
- Author:
CopyrightCopyright 2004 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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Enrico Bondi, the turnaround expert appointed as special
administrator to Parmalat, is this weekend fighting to keep the
stricken Italian dairy multinational alive.
Parmalat, which has collapsed after a 10bn ( pounds 7bn)
accounting black hole was uncovered, is this week expected to take
advantage of its temporary immunity from creditors (which its
bankrupt status gives it) to ask banks for around 50m ( pounds 35m)
to pay suppliers and keep the company trading.
That sum, to be used as working capital, is a drop in the ocean
compared with the mountains of cash that Parmalat has burned through
over the past few years.
Since 1997 it has raised 7.5bn ( pounds 5.3bn) through public bond
issues ...