Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
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https://casecent.re/p/19358
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Abstract
In December 2003, the world witnessed the swift downfall of the Italian dairy giant Parmalat Finanziaria SpA, which for a long time, was considered as the icon of Italy''s business community. The scandal that led to the stunning downfall of Parmalat was called ''one of the largest and most brazen corporate frauds in history'' by the US market watchdog Securities and Exchange Commission. It was believed that Parmalat operated through a network of 200 subsidiaries, which the company used to raise finances from the banks. Investigations into the scandal brought many banks into the spotlight. The case study delves into the financial details of Parmalat and the means through which it raised funds from banks. Specifically, the case deals with the special purpose vehicles set up by Parmalat to raise money from banks to fund its expansion.
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Abstract
In December 2003, the world witnessed the swift downfall of the Italian dairy giant Parmalat Finanziaria SpA, which for a long time, was considered as the icon of Italy''s business community. The scandal that led to the stunning downfall of Parmalat was called ''one of the largest and most brazen corporate frauds in history'' by the US market watchdog Securities and Exchange Commission. It was believed that Parmalat operated through a network of 200 subsidiaries, which the company used to raise finances from the banks. Investigations into the scandal brought many banks into the spotlight. The case study delves into the financial details of Parmalat and the means through which it raised funds from banks. Specifically, the case deals with the special purpose vehicles set up by Parmalat to raise money from banks to fund its expansion.