KPMG spent two months on the scene at failed potash hopeful Salt Lake Potash, before it was tapped as the company’s administrator.
KPMG’s administrators revealed Salt Lake Potash’s law firm, Thomson Geer, hired them to review the company’s cash flow forecasts back in August, when it became clear that company’s finances might be stretched.
KPMG said it sent a report to Salt Lake Potash and Thomson Geer every 10 days or so starting September 9, and had its operatives attend three company board meetings to present their findings. Their remit included reviewing the company’s 13-week cash flow forecasts and cash flow management techniques that could be deployed.
The reports led the KPMG representatives to discuss the administration process with Salt Lake Potash management and, later, board, before fronting up to the secured lenders who were owned about $170 million from the ASX-listed resources play.
The lenders hit back by appointing KordaMentha as receiver.
