07/10/2008 - 15:04

Suspect Palandri deals to be probed

07/10/2008 - 15:04

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Creditors of the collapsed Palandri Wine Group have today voted overwhelmingly in favour of placing the company into liquidation, but a return figure has yet to be determined as suspect transactions warrant further investigation.

Suspect Palandri deals to be probed

Creditors of the collapsed Palandri Wine Group have today voted overwhelmingly in favour of placing the company into liquidation, but a return figure has yet to be determined as suspect transactions warrant further investigation.

At a meeting this morning, creditors heeded the administrator Deloitte's recommendation to place the company into liquidation. Deloitte will act as liquidators for the company.

"The primary reason why creditors wanted the group to go into liquidation was so that the liquidators can investigate further certain transactions and see whether they can make any recoveries from third parties," Deloitte partner Gary Doran told WA Business News.

"If those claims [against third parties] are successful, it may provide a higher return to investors."

Mr Doran declined to give a rough estimate of the amount of returns to creditors, saying the investigations needed to be completed first.

"We would hope within six months we would be able to finish those investigations and public examinations so that we can get a better feel for what the potential magnitude of the likely recovery is," Mr Doran said.

"Then we would hold a meeting of creditors and put that to the creditors so they can decide what they want to do."

Most of Palandri's assets have either been sold or are in the process of being sold. Some assets have been sold to the newly-formed Global Wine Holdings Pty Ltd.

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