Hi Buddy,You are right to question whether Directors had allowed...

Hi Buddy,

You are right to question whether Directors had allowed PLV to trade while insolvent most likely soon after it was forced into voluntary suspension on 2 July 2012 because SS&T failed to complete its financing. They only had $661,000 cash at the end of June qtr 2012 and had projected expenses for Sep qtr of $2m. However, by August 1 they executed the sales agreement on Cockatoo which is not exactly a cash strapped thing to do. We know the vendors provided short term funding via a mortgage, WEG provided a $3m interest free loan and WEG arranged $5.5m in pre-sales by 31 August. So I doubt they were trading while insolvent. The more recent April 2013 claytons receivership was more tactical than cashflow related imo (who was going to blink first).

My understanding is that it is not the job of an auditor to check cash position at every hour/day or week thru the period of the accounts. They will however, check credit payments and the terms of any re-financing arrangements and as we know PLV sourced quite a few options. Another potential issue is how the auditor has classified the funding versus the company treatment. Letters of credit are not classified as debt as I understand it.

Anyway we can do our heads in going thru all the potential delay options. Pelm's advice is right that it will get sorted out eventually. I would take your advice and take my dog for a walk if I had one. I take solace that they are taking recent steps to clarify ownership arrangements and to make things more transparent. "Pending" does not constitute clarification and hopefully we will hear something when it's "recorded" on the government database instead. There is a reasonable chance we re-list with WEG gone and NICE as our new JV partners. The price at which WEG sold their PLV shares would set the boundary of the re-list price.

Cheers
Bleasby