Citigroup sues Italy over government handling of Parmalat bankruptcy

Citigroup, the world's largest financial company, filed suit Friday against Italy (government site in Italian) for the government's handling of the Parmalat bankruptcy. Citigroup was owed almost $665 million by the foodmaker when it collapsed last year, but the bank alleged that the Italian government had allowed Parmalat to accept far more creditor claims from Italian lenders than US groups.

About 99 percent of American requests have been turned down by Parmalat Chairman Enrico Bondi, while only about 57 percent of Italian requests have received such treatment. The Italian government and Parmalat both refused to comment on the suit. The suit came only a day after Parmalat sued Bank of America for its financing of the company. Parmalat filed a similar suit against Citigroup in July. Bloomberg has more.

 

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.