Parmalat

Introduction Parmalat is an Italian based company, founded in 1961 by Calisto Tanzi. Their business model covered the new UHT (ultra-high temperature) production method of milk and dairy products. UHT milk was an upcoming technology from the Swedish firm Tetra Pak, making Parmalat an international player (Buchanan & Yang, 2005). Foreign acquisitions in the field of dairy products made Parmalat a multinational general food company (Ferrarini & Giudici, 2005). In the late 1980’s, Parmalat was Italy’s

Something went sour at Parmalat The Italian dairy food corporation Parmalat SpA was founded by Calisto Tanzi in 1961 and grew to a global company. It had about 140 production centers, 36,000 employees and 5,000 contracted dairy farms (https://en.wikipedia.org/wiki/Parmalat). The dairy food giant defaulted on debt in November 2002 and filed bankruptcy in December 2003. It sounds ridiculous because Parmalat’s subsidiary in Cayman Islands had a $4.9 billion cash balance in Bank of America account

Introduction and Overview of the Corporation Parmalat is an Italian-based company most well known for its production of various forms of dairy product, as well as pastries and fruit drinks. The company, started in 1961 by a 22 year old Calisto Tanzi, was initially a small family run business that sold primarily meat products. Parmalat became a success once it had developed the concept of a milk that could remain unspoiled in tetra-paks for extended periods of time. This milk was called UHT (Ultra-High

Overview 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. Scandal Key Players in the scandal Calisto Tanzi - 10 year sentence for market rigging, accounting fraud(2009) Fausto Tonna

Nov 3 2016 Overview Parmalat SpA is a multinational Italian dairy and food corporation that specializes in UHT (Ultra High Temperature) production of long-life milk, dairy products (yogurt, cream based sauces, desserts and cheese) and fruit beverages.(Parmalat in brief) It was founded by Calisto Tanzi in 1961 and the headquarters is based in Collecchio, Italy. By the early 2000s, the small Italian company had become a global food empire spanning 30 countries and employing over 35,000 people.(BBC)

THE PARMALAT SCANDAL The Parmalat situation started out as a fairly standard – although sizeable –accounting fraud. Not even the best auditors could prepare for what was to come from this company. The Parmalat group, a world leader in the dairy food business, collapsed and entered bankruptcy protection in December 2003 after acknowledging massive holes in its financial statements. This happened when billions of euros seem to have gone missing from the company’s accounts. This dramatic collapse

Something Went Sour at Parmalat Parmalat is a multinational Italian dairy food corporation that today represents one of the biggest fraud scandals that has marked history in Europe. What happened and why weren’t the scandalous activities detected beforehand? Parmalat’s investigation was triggered when it “defaulted on a $187 million bond payment in mid-November 2002.” This led to further revelation of the nonexistence of $4 billion worth of claimed bank deposits held by a subsidiary in the Cayman

one of the offshore mail-box firms used to channel the liquidity coming from the bond sales was called Bucanero, which means ‘black hole’! Appropriately, the first class-action suit in the United States on the Parmalat case, filed by the South Alaskan miners’ Pension Fund, is against Parmalat, its auditors, Bank of America, and Citicorp—and focuses on Bucanero’’ It was later found out in 2003 that the company concealed a sum of $14 bn ‘’black hole’’, as Celani suggests, in its finances. (Claudio Celani

PRACTITIONER'S CORNER INVESTORS TRUST AFTER PARMALAT SCANDAL: THE ROLE OF CORPORATE GOVERNANCE Giovanni D’Orio Giovanni D’Orio, Department of Economics and Statistics, University of Calabria – Rende (CS) Italy. Contact: gio.dorio@unical.it 1.1. Introduction The collapse of the Parmalat food empire reveals a troubling aspect about Italian capitalism - the lack of effective financial control over its family-owned companies. But was Parmalat scandal a pure problem of corporate governance

role that Parmalat’s management and its accounting department played in this case? Parmalat was founded in 1961 in Northern Italy. The company eventually grew into one of the largest diary and food company in Italy and eventually became a multinational conglomerate with 214 subsidiaries in 48 different countries. In 1990, the company’s financial performance began to slip. Instead of resolve the problems, Parmalat executives and managements used a wide range of unethical techniques to disguise them