The receivers of Du Val Group from PwC have raised several serious concerns about Du Val Group’s financial management, leading them to question the founders about the company’s assets, including a number of factors that are being examined.
The group’s financial position is complex, with significant related party balances requiring investigation to determine recoverability and potential creditor claims according to reports from the receivers who are verifying the legitimacy and value of the group’s assets.
- Among the issues concerning receivers are irregular accounting entries that involve practices that may have created assets that are not legitimate or have insufficiently supported valuations.
- There are also concerns about internally produced valuations used in offers to investors, with no independent external valuation to support the claimed values.
- Related party transactions involving a trust run by the Du Val group founders and directors, Kenyon and Charlotte Clarke, require further investigation according to reports, along with a $15 million transaction for intellectual property from the Clarke Trust, which was later reduced to $5.5 million, lacks sufficient documentation and explanation. The receivers are also examine personal expenses paid to the Clarkes by the group.
- The Clarkes are still attempting to secure legal assistance in their fight with the Financial Markets Authority, the Statutory Manager and the receivers.
These issues have led to concerns about the legitimacy and value of Du Val Group’s assets, prompting the receivers to seek clarification from the founders about the true state of the company’s financial position.
