Latest / Best of Business / Maria Slade: BusinessDesk reporter on the release of the receiver's report into Du Val group

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Maria Slade: BusinessDesk reporter on the release of the receiver's report into Du Val group · Best of Business

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  Speaker 1: You're listening to a podcast from newstalks'd be follow this
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  Speaker 1: do for ze Ellen?
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  Speaker 2: Right?
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  Speaker 3: Well, the hotly anticipated receiver's report into the duval Group
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  Speaker 3: has been released. As expected, it's quite complicated in there.
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  Speaker 3: There were no consolidated accounts, no financial records for the
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  Speaker 3: du Vile Group companies that never been audited. Rather, and
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  Speaker 3: receivers have questioned the group's valuation of more than four
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  Speaker 3: hundred and thirty million dollars. Now Business Desk journalist Maria
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  Speaker 3: Slade has been looking into this and it is with
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  Speaker 3: us now how Maria, Hello, Okay, Now, the business bought
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  Speaker 3: fifteen million dollars worth of intellectual property off the couple.
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  Speaker 3: That sounds like a lot of money just be spending
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  Speaker 3: on IP, is it.
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  Speaker 2: Well, this is one of the things that the receivers
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  Speaker 2: have pointed out as one of the main concerns are
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  Speaker 2: these related party transactions that have sort of washed about
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  Speaker 2: this very large group of seventy odd entities. And one
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  Speaker 2: of the things that they identify was a fifteen million
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  Speaker 2: dollar intellectual property transaction between the Clark's family trust and
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  Speaker 2: one of the inter and it was a loan, and
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  Speaker 2: apparently there's no zero accounting records or anything to show
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  Speaker 2: where the funds came from. The loan is now five
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  Speaker 2: million dollars, but where'd that other ten million dollars go?
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  Speaker 2: And what was it for? Nobody knows, So that that's
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  Speaker 2: an indication of the kinds of transactions they'revery concerned about.
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  Speaker 3: What about the valuation of the company. Was this just
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  Speaker 3: something they made up? Where did they have evidence to.
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  Speaker 2: This came out a while ago, actually, so they wanted
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  Speaker 2: to do a public listing, a float on the stock exchange, supposedly,
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  Speaker 2: and so they produced an information memorandum, which is what
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  Speaker 2: you're supposed to do if you're going to do something
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  Speaker 2: like this, and they put this valuation of four hundred
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  Speaker 2: and thirty one million, a top end valuation on the group.
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  Speaker 2: But that was their own finger in the wind valuation.
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  Speaker 2: There was no independent valuation, So who would know whether
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  Speaker 2: that had any validity because it wasn't based on a lot.
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  Speaker 3: So was it a hot mess in there?
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  Speaker 1: Well?
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  Speaker 2: The receiver, John Fisks described it as a bowl of spaghetti,
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  Speaker 2: And you certainly start to get that sense when you
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  Speaker 2: look into things like, for example, one of the developments,
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  Speaker 2: the proposed Edmonton muse out in Henderson, nice little strip
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  Speaker 2: of land overlooking the two Eaglenn Reserve. I might add,
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  Speaker 2: nice spot. But that property had four mortgages on it,
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  Speaker 2: no less, and the investors were the third or the
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  Speaker 2: fourth in the rankings. And one of those mortgages was
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  Speaker 2: to one of their other developments. So one of their
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  Speaker 2: other entities mortgaged their own entity.
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  Speaker 3: Okay, John Fisker's got a job on his hands.
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  Speaker 2: He certainly does. And as you identify all the accounting problems,
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  Speaker 2: they never did consolidated accounts, so that's when you look
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  Speaker 2: at the whole group together, never done. None of the
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  Speaker 2: accounts we were audited. I mean, you know, anyone knows.
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  Speaker 2: That's just kind of basic. You've got to have foardited accounts.
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  Speaker 2: And the significant number of related party advances including transactions,
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  Speaker 2: they said that didn't appear to have anything to do
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  Speaker 2: with the actual operating purpose of the entity that advanced
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  Speaker 2: the funds.
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  Speaker 3: Well, Maria, I'm sure you're going to see a lot
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  Speaker 3: in there. Thank you so much for your time. I
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  Speaker 3: really appreciate it. Is Maria Slade, journalist from Business Desk.
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