PracticeConsultingKPMG may avoid Independent battle

KPMG may avoid Independent battle

KPMG could escape a costly legal battle over the collapse of Independent Insurance because creditors are short of cash.

Creditors of Independent Insurance Group chairman Kevin Young admitted to the Insurance Times that more money was required if the action to recover funds was to proceed.

Young said that there was ‘enough compelling evidence’ to commission a feasibility study into the case, but the group was Pounds 1m short of the total needed.

Soon after the fall of Independent Insurance in June, KPMG was identified as the main target for creditors wishing to recoup losses. The Big Five firm, which was auditor from 1986 until the insurer collapsed, was even told by an MP that it needed its ‘corporate eyes tested’.

In a call to those who had lost money, Young told the insurance trade weekly that it was time ‘people made the decision whether to stand up and be counted’.

KPMG refused to comment on the news but maintained that it had ‘no legal case to answer’.

Links

Independent auditor slammed by MP

Taking Stock – Maxwellian tragedy

KPMG target for Independent creditors

Independent collapse hits indemnity cover

ICAEW to investigate insurer’s collapse

Independent FD unaware of contracts

Liquidators appointed at Independent

SFO called to probe Independent

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer