Palandri lawyers head to court

Lawyers representing the voluntary administrators of the Palandri group of companies are scheduled to appear in the Supreme Court of Western Australia on Monday in an attempt to have the group's managed investment schemes wound up.

Neil Cussen, one of the voluntary administrators from Deloitte, said the application to wind up the schemes follows investigations by the administrators which determined that the schemes are either insolvent, not financially viable or both.

The administrators have previously written to all investors in the managed investment schemes outlining the reasons for the application.

According to Mr Cussen there has been significant interest from investors in the progress of the application. Two investors have indicated that they may oppose the application to wind up the schemes.

Mr Cussen said that a court order to wind up the schemes will assist in the completion of an agreement to sell certain vineyards owned by companies in the Palandri Group.

Mr Cussen confirmed that the next meeting of the group's creditors is scheduled to take place no later than October 7 2008, and that he was in the process of finalising the administrators' report which would detail the options available to creditors and the potential return to them.

Mr Cussen said the Administrators' report would be sent to creditors on 29 September 2008.

Last month, Deloitte said investors stand to lose about $160 million after claiming the company insolvent.