Holy cow

18 December 2003 By Rob Cox Follow @rob1cox

Bank of America denied the authenticity of a document submitted by Parmalat to Grant Thornton certifying the existence of E4bn of liquidity. This is the worst blow yet to the credibility of Parmalat’s accounts. Bondi should declare protection from creditors to sort things out now.

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Parmalat said its auditors have been informed by Bank of America that the bank does not have an account in the name of Bonlat Financing Corp, a subsidiary of Parmalat that the Italian dairy company said held about E3.95bn of cash and liquid securities.

Furthermore, Bank of America said it "denied the authenticity of a document dated 6 March 2003 that certified the existence of securities and liquidity amounting to approximately E3.95bn as at 31 December 2002 relating to Bonlat."

The document referred to by the company was used by auditors Grant Thornton to certify the company's accounts.

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Holy cow

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