Document Type
Article
Disciplines
International Law
Abstract
In December 2003, the Parmalat Group ("Parmalat"),' a company so massive that it comprised 1.5% of Italy's Gross National Product ("GNP"), 2 suddenly collapsed and entered bankruptcy protection.3 The collapse of this multinational food and beverage giant was the result of the discovery of systematic financial fraud, which took place over a period of several years." On December 8, 2003, despite showing approximately $5 billion in cash on its balance sheet, Parmalat was barely able to avoid defaulting on a $150 million note payment that had come due.5 It was only able to do so by invoking a five-day grace period.' Four days later, as public suspicion of Parmalat's financial situation grew, the company was somehow able to locate money to make the note payment.7 On December 19, Bank of America announced that an account that Parmalat alleged contained approximately $3.9 billion of cash did not exist.' It was at that moment that Parmalat's insolvency was revealed to the public.
Recommended Citation
McCarthy, Brian, "Imprevedibilita!: An Analysis of Italy's Failure to Create or Maintain a Stable and Efficient Insolvency System" (2009). Connecticut Journal of International Law. 488.
https://digitalcommons.lib.uconn.edu/cjil/488
Accessibility Requirements
1