BusinessBusiness RecoveryGT battles insurers over Parmalat liability cover

GT battles insurers over Parmalat liability cover

Grant Thornton is set to take centre stage in the ongoing legal battles over the demise of Parmalat, as the firm fights its insurers for cover

Brit Insurance faces a House of Lords battle in March as
Grant Thornton International
attempts to force the insurer to pay out on the firm’s cover in relation to
Parmalat.

The international network had been denied cover in an earlier court case,
because its former Italian member firm, Italaudit, did not claim under the
policy.

The case is the latest in the ongoing fallout from Parmalat’s collapse, as
investment banks face charges in Milan over their involvement in the company’s
collapse.
The GT network was treated as a member of the firm’s policy, but because the
Italian branch failed to disclose litigation with Parmalat, Brit refused to
cover GTI.

The Parmalat scandal hit the headlines again this year as Deloitte’s €76m
(£57m) settlement proposal was put forward to Parmalat bondholders, and the
trial began against four investment banks over their role in its collapse.
Citigroup, Deutsche Bank, UBS and Morgan Stanley face trial in Milan after
continuing to lend to the group as it collapsed.

Last year a US judge threw out claims against the auditors and bankers of
Parmalat. Judge Lewis Kaplan said that the majority of the alleged wrongdoing
attributed to the banks and auditors occurred outside the jurisdiction of the
US, so the defendants did not have to face charges.

Judge Kaplan had already thrown out cases against Deloitte & Touche’s US
and Italian units, GTI’s US business, Bank of America, Italy’s Banca Nazionale
del Lavoro SpA, and units of Credit Suisse Group.

The failed cases were brought by the administrator for Parmalat USA and the
litigation trustee for its Farmland dairies unit, both former US subsidiaries of
Parmalat.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

4d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

4d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor