Prosecutors investigating the collapse of Italian food group Parmalat yesterday seized documents from Archimede Securitization, a unit of Italian factoring company Eureka, which belongs to US bank Citigroup.
Citigroup made a complaint to Milan magistrates two days ago, accusing Parmalat of forging some Ђ200m worth of letters of credit to suppliers in 2003 alone. Yesterday the bank said it also handed over documents on Parmalat's securitisation programme to support its complaint.
Investigators are trying to discover whether someone inside the bank knowingly helped to securitise false invoices from companies holding concessionary contracts to sell Parmalat products. The securitisations would have added liquidity to Parmalat's accounts and helped the ailing company obtain bank loans.
Source: Il Sole 24 Ore
