Parmalat Faces Deepening Crisis

With share trading suspended Italian agri-food giant Parmalat appears on the brink of collapse as it struggles to come up with enough cash to fill a major financial hole.

The company, and many of its past and present senior executives, are under investigation for fraud, and judges have confirmed, according to news agencies Ansa and Radiocor, that the accounts of the company's Cayman Island subsidiary have been 'falsified'.

Last week, Bank of America stated that a document certifying the company's Cayman unit, Bonlat, had 3.950 billion euros of liquidity, was not authentic, creating further difficulties for the cash strapped company, already struggling to cover financial obligations.

The company has in excess of 36,000 employees worldwide in 30 countries, and its collapse would have devastating effect, likely forcing intervention by Italy's Prime Minister.

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