Palandri Wine Group to wind up SchemesDOWNLOAD
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22 August 2008: The Voluntary Administrators of one of the companies in the Palandri Wine Group, PWL applied to the Supreme Court of Western Australia on Friday 15 August for an order to wind up the Managed Investment Schemes (MIS) for which PWL is the responsible entity.
The application follows investigations by the Administrators (John Greig, Neil Cussen and Gary Doran from Deloitte) into the financial position of PWL, the responsible entity for six MIS and other companies within the Palandri Wine Group. Members in the six MIS had invested a total of approximately $160 million.
These investigations have concluded that PWL is insolvent. The Voluntary Administrators have been unable to find a suitable replacement responsible entity and consider the prospects for finding such a replacement to be very low.
The investigations found that all the MIS are either insolvent on a cash-flow basis, a balance sheet basis or on the basis of the accounts kept by PWL, have no assets or liabilities. Further, MIS involving the growing of grapes would require members to pay more funds than they are likely to receive in revenue for the remainder of those MIS. As a result, none of the MIS have the working capital required to continue to operate, and the Administrators are not aware of anyone who would be willing to contribute sufficient working capital to resolve the situation.
The Administrators have written to all members of the various MIS summarising the investigations into the financial positions and the viability of the MIS, and the reasons why they have caused PWL to make the application to wind them up.
By winding up the MIS, the Administrators may be able to complete the sale of the Palandri Wine Group’s vineyards at Margaret River and Frankland River. However, based on the Administrators’ analysis of the Group’s financial position, it is highly unlikely that members will be entitled to any proceeds from this sale.
The next hearing for the application to wind up the MIS is scheduled to take place in the Supreme Court of Western Australia on 3 September 2008 at not before 10:00 am.
Tel: +61 (0) 8 9365 7000