Parmalat founder Calisto Tanzi stays at home as £11bn fraud trial begins

Fifty-five defendants face charges of bankruptcy fraud, false accounting and criminal association. Mr Tanzi, his brother Giovanni and Fausto Tonna, the bankrupted company's former finance director, are among 24 former executives who face charges that carry a maximum 15 years in prison. All deny the charges against them.

The collapse of Parmalat in late 2003 cost 100,000 small shareholders their savings after 14 billion (£10.8 billion) - eight times the amount admitted previously - was found to be missing from the group's accounts.

The bankruptcy, dubbed “Europe's Enron”, has already given rise to a series of trials in Milan involving lesser defendants. They include Mr Tanzi's children, Francesca and Stefano, who held posts in Parmalat subsidiaries, including Parma football club and the Parmatours travel company.

At its height Parmalat employed 36,000 people in 30 countries. Parmalat milk and yoghurt products reappeared in Italian shops three years ago after it resumed dairy operations under Enrico Bondi, its new chief executive, who has recouped €1.3 billion from banks. Last year it made net profit of €673 million.

Notes on the scandal

December 2003:  Hole in accounts found

January 2004:  Auditors questioned; Carlo Tanzi arrested; lawsuit filed against Citigroup

March:  Parmalat agrees loan deal

August:  Parmalat sues UBS, Bank of America and Citigroup

October:  Citigroup sues Italian Government

June 2005:  Eleven Parmalat executives and lawyer convicted of market-rigging