| Italian food manufacturer Parmalat is close to bankruptcy The largest Italian manufacturer of drinks and food products Parmalat may go bankrupt. On Friday evening, the Milan Stock Exchange was forced to announce the suspension of the sale of the company's shares due to a sharp drop in its capitalization. The depreciation of Parmalat's assets was caused by the results of the latest audit - the auditors who carried it out found that almost all of the Italian manufacturer's liquidity was in fact non-existent, and some accounts, financial papers and reports were fictitious.
At the center of the scandal was Parmalat's division, Bonlat Financing, registered in the Cayman Islands. At his disposal, he did not find funds in the amount of 3.95 billion euros indicated in financial documents in an account with Bank of America, as well as the account itself with this bank. “We are seeing a possible bankruptcy approaching. Now that the amount of $4.95 billion has evaporated, Parmalat’s bankers are unlikely to lend money; most likely, the company will face a long restructuring process,” commented John Hamilton, manager of Jupiter Asset Management, on the current financial condition of the Italian giant.
Despite such pessimistic forecasts, Parmalat management does not lose hope. The other day, Italian Prime Minister Silvio Berlusconi promised to do everything possible to rid the producer of juices, milk and cookies from the debt trap. “The government will intervene to save the company, its industrial part and its workforce, will intervene to separate finance from industry,” said the Italian billionaire. “The government must take some measures to prevent similar incidents in the future.” Mr. Berlusconi did not specify what specific measures the country's leadership will take.
Parmalat pins its expectations on the new head of the company, Enrico Bondi, a well-known expert in Italy in rescuing dying “business sharks”. After the scandal flared up in full force, the company's board of directors invited Mr. Bondi to the post of chief executive - instead of the company's founder, Calisto Tanzio. Many believe that he is able to restore the functionality of the company's 30 branches in various countries and retain a significant part of the staff of 35 thousand people. Denis UVAROV |
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