PracticeConsultingPwC called in by banks to report on embattled Versailles

PwC called in by banks to report on embattled Versailles

PricewaterhouseCoopers has been called in by the banks behind troubled trading financier Versailles in an attempt to safeguard loans believed to total £65m, it has emerged.

The move follows yesterday’s withdrawal by Big Five rival KPMG,which was investigating Versailles’ accounting irregularities.

PwC’s involvement makes it the fifth firm in two months to become embroiled with Versailles. Three banks – NatWest, Royal Bank of Scotland and Barclays – which provide credit lines for the financier, called in the firm to examine the company’s books.

The three banks originally appointed KPMG in December following the suspension of Versailles’stock exchange listing in the same month.

It was also discovered that high-profile Versailles chief executive Carl Cushnie sold £29m of his stock in the company without revealing ongoing inquiries into Versailles by the DTI.

Additionally, Baker Tilly is undertaking an investigation for the stock exchange on Versailles’ accounting procedures after an inquiry by the Department of Trade and Industry originally uncovered the possible problems in August last year.

Baker Tilly’s draft findings – into apparent breaches of accounting rules governing off-balance sheet financing under FRS5 along with other irregularities – backed an earlier report by Levy Gee, which was hired by Versailles in light of the DTI concerns.

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