Rise and Fall of Parmalat Dairy

‏Parmalat, an Italian company specializing in long-life milk, was founded by Calisto Tanzi. It seemed to be a marvellous success story although, as it expanded by acquiring more com- panies, its debt increased and, in late 2003, Parmalat had difficulty making a bond payment despite the fact that it was supposed to have a large cash reserve. After various investigations had been carried out, it transpired that the large cash reserves were non-existent and Par- malat went into administration. With debts estimated at £10 billion, Parmalat has also earned itself the name of ‘Europe’s Enron

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