At a meeting last week, creditors questioned the administrators about the way forward, and requested that the preparation of TAG’s accounts and the work of the auditors be looked at.
An insolvency expert representing the company’s creditors said: ‘There are a number of matters that require a more detailed investigation. We maintain that the company has never been solvent.’
He added that, although his clients had no thought of taking legal action against KPMG, the ‘situation was being looked at by the administrators’.
PwC confirmed it would ‘look into the auditors under the course of our duties’. The administrators will also accede to creditors’ requests that the company’s final dividend payments be investigated.
PKF partner Philip Long, who represents the group’s landlords, said he raised the issue of the dividend because ‘such large dividends were paid to shareholders so near to the demise of the company’.
In its accounts to August 31 2002, the company paid out dividends of £7.6m. The company went into administration with debts of £81m in May.
PwC estimated that preferential creditors would receive only 8.2p for every pound they are owed.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children