Tony Lomas and Neville Kahn of PricewaterhouseCoopers have been appointed as administrative receivers to the troubled Versailles Group and its trading subsidiary Versailles Trade Finance. They will now take charge of the affairs of both companies.
PwC was asked before Christmas by the companies’ bankers to investigate the companies’ financial affairs. The investigations, led by Aidan Birkett of the firm’s Business Recovery Services practice, found the appearance of ‘complex, extensive and long running fraud inside the company of a very material nature’.
The firm’s appointment as administrative receivers to Versailles, which suspended its finance director yesterday, was secured at a meeting with bankers yesterday.In a statement PwC said: ‘As the extent of the apparent fraud at Versailles was gradually uncovered, it became apparent that the size of the problem was such that it would be impossible to restructure the Versailles Group’s affairs in order to ensure its survival.
‘[Lomas and Kahn’s] priority is now to secure control of the companies’ assets and then to begin to realise the cash that is tied up in the group’s complex transactions.’
PwC’s appointment is latest in a long line of accountants to advise the company in troubled weeks. Baker Tilly, KPMG and Levy Gee have also advised on the Versailles case since accounting irreglarities were uncovered late last year.
Troubled finance house Versailles suspends finance director