Parmalat gives prosecutors new evidence against banks

31 Oct, 2004

Parmalat's administrator has handed prosecutors probing the food group's insolvency new evidence aimed at proving certain foreign banks played a key role in its near collapse, judicial sources said on Saturday.
The file of documents administrator Enrico Bondi gave to prosecutors in the company's home town of Parma could bolster their investigation into whether the banks can be charged with conspiracy to commit bankruptcy, a crime in Italy.
The sources did not specify which banks were named in the documents, but newspapers reported on Saturday that they named Bank of America , which is already accused of crimes in Parmalat's collapse in a separate investigation in Milan.
The bank has denied wrongdoing over Parmalat's 14 billion euro insolvency, the result of one of Europe's largest-ever corporate debacless.
If they do name the bank, the documents would be Bondi's latest bid to lay a large part of the blame for Parmalat's multibillion euro insolvency at the doorstep of the bank giant.
Parmalat has sued Bank of America in the United States for damages of $10 billion, part of its bid to recover billions of euros in cash burnt by its former management.
Bank of America has since struck back, asking to file a counter suit against the insolvent food group.
Bank of America on Friday also asked the same court which is considering whether it should be put on trial over its role advising Parmalat before the group's slide into insolvency to include it as a damaged party in the multi-billion-euro case.

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