Parmalat

Italian food company Parmalat has filed for bankruptcy protection under new fast-track administration rules unveiled by the government.

The firm, which has revealed a multi-billion euro hole in its accounts, is being dubbed "Europe's Enron".

Two teams of investigators are now ready to probe the firm's books, to see how it based its business on an allegedly fake financial statement.

Some 20 people could face charges including former boss Calisto Tanzi.

False papers

The Parmalat affair has grown into one of Europe's biggest financial scandals since last week's discovery that papers detailing a $3.9bn euro bank account on the Cayman Islands were false.

CALISTO TANZI

Inherited Parmalat age 22

Chief executive for 40 years

Handed control to son, Stefano, in 2001

Net worth estimated at $1.3bn

Owns AC Parma football club

Now under investigation

The Italian company's accounts could have been concealing a black hole as big as 10bn euros, according to the latest reports.

Investigators said people questioned on Tuesday detailed a web of financial deception dating back more than a decade and approved by senior managers.

That could also potentially have grave implications for the company's auditors, the Italian branch of Grant Thornton.

Grant Thornton is insisting that its staff have acted correctly, and that the fake document has made them a "victim" of fraud.

Accelerated process

The firm looked almost certain to go into administration once the extent of its financial troubles became apparent.

PARMALAT: KEY FACTS

Founded in 1961 by Calisto Tanzi

Employs 36,400 workers in 30 countries

2002 revenues were 7.6bn euros

Owns Parma football club in Italy, and Palmeiras in Brazil

Why Parmalat's muddy finances have worried the markets

On Tuesday, the Italian cabinet approved a new law making bankruptcy proceedings swifter for large companies and giving them a better chance to restructure successfully.

"The government...