Creditors Aware Of Fraud, Parmalat CEO Testifies

Law360, New York (February 28, 2006, 12:00 AM EST) -- Alleging breach of fiduciary duty, Parmalat SpA’s new chief executive testified that the dairy giant’s former financial partners were aware of the company’s financial state well before the massive financial scandal broke.

Chief Executive Enrico Bondi, a witness at the Milan trial of ousted Parmalat founder and chief executive Calisto Tanzi, told the court that the financial institutions knew “without a doubt” of the company’s dire financial straits in the months leading up to its insolvency.

“Simple comparisons on the debt declared on the balance sheets”...
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