ICAEW investigates E&Y pre-pack of Wind Hellas

THE ICAEW has launched an enquiry into possible conflict of interest issues in Ernst & Young’s pre-pack administration of Wind Hellas.

It is understood the ICAEW’s professional conduct department has written to E&Y questioning why it took on Wind Hellas’s administration, when it already had a long-standing relationship with the company.

Ernst & Young took on the pre-pack of the Greek communication company in mid 2009 which saw creditors lose about £1.3bn, The Telegraph reports.

In the letter to Maggie Mills, the E&Y partner who oversaw the pre-pack, the institute’s investigation manager, John Morton, said Ms Mills should have “resigned” from the appointment because of a conflict of interest.

“As you are a partner of E&Y there is, and there can be reasonably be seen to be, a threat to your objectivity in considering these matters,” he wrote.

It has been reported Morton is requesting details from E&Y on how much it collected in fees from the pre-pack and what conflict of interest policies the firm has in place.

A statement from E&Y said: “The institute investigates all complaints from the public and we will respond to any inquiries raised with us.”

If the firm has breached its code of ethics it could be fined up to one-and-a half times the fees it charged for the administration of Wind Hellas.

It is believed that Bertrand des Pallières, a founder of a hedge fund, made the complaint to the institute.

Restructuring experts from Deloitte were called to Wind Hellas in June last year to discuss with creditors the firm’s outstanding debt of approximately €1.7bn (£1.45bn).