The receivers behind Elderslie Finance will launch a public examination of the failed group's auditor in a bid to recover more money for the thousands of investors stung by the former WA company's collapse.
In their third report issued to creditors this week, PricewaterhouseCoopers receivers Greg Hall and Phil Carter warned any return for the 4000 debenture holders owed about $140 million was still likely to be years away.
The Elderslie group, founded in Perth in 1957 and chaired by one-time Liberal leader John Hewson, fell into receivership in July last year after several planned rescue bids collapsed.
It has total liabilities of more than $400 million.
Since its collapse, PwC has been working to piece together the finances of the company and unravel its tangle of subsidiaries and had initially told investors it was hopeful of returning them as much as 40¢ in the dollar.
But PwC has struggled to find buyers for the group's assets, which range from vineyards in South Australia and property holdings spread across the company to its main asset, a multimillion-dollar loan book, and revised the estimated return down to just 10¢.
Mr Hall and Mr Carter have also warned any return was unlikely to be realised until the run-off of the loan book is complete, which is expected to take five years. But in a potential ray of light for investors, the receivers confirmed they had liaised with the Australian Securities & Investments Commission and key creditors and were "investigating avenues for potential claims" against third parties in a bid to recover more money.
"We have received authorisation from ASIC to perform a public examination of the auditors at this time," Mr Hall and Mr Carter said in their report.
"ASIC will retain the right to investigate any other aspect of the Elderslie Group operations and any other parties including company directors if it has grounds to suspect that contraventions have occurred."
Sydney accounting firm Trood Pratt & Co was the listed auditor of Elderslie's 2006-07 accounts.
The receivers did not disclose whether the investigation will be pursued through the courts.
RACHEL DONKIN
