This article is from the Australian Property Journal archive
CENTRO Properties Group has pleaded with lawyers representing the disgruntled investors suing the group for $1 billion, to return to mediation.
And in a sudden change, Centro is also pleading to PricewaterhouseCoopers, the company’s former auditors, to return to mediation.
PwC was Centro’s auditor for eight years and resigned in June this year and at the same the firm reportedly launched an internal investigation into Centro’s accounts after the property group revised debt classification three times.
Even though PwC has washed its hands over the debt debacle, Centro dragged PwC into the class action in an attempt to share the blame.
Centro made a cross-claim against the auditor in May this year.
Yesterday Centro chairman Paul Cooper said lawyers representing the investors, Maurice Blackburn and Slater & Gordon have walked away from talks which were initiated over 12 months.
“Meaningful mediation discussions occurred in July and were expected to continue this month.
“I call for all participants, namely Maurice Blackburn, Slater & Gordon, and PricewaterhouseCoopers to return to the mediation talks to pursue a resolution of the proceedings,” he added.
In more legal action news, Cooper said the Australian Securities and Investments Commission civil action launched last month, against Centro’s former and current directors are untested.
ASIC alleges that the former directors breached their duties namely:
· Brian Healey, former chairman and non-executive director
· Andrew Scott, former CEO
· Samuel Kavourakis, former non-executive director;
· Peter Graham Goldie, former non-executive director;
· Louis Peter Wilkinson, former non-executive director; and
· Romano George Nenna, former CFO.
ASIC is also taking action against Cooper and James Hall, a non-executive director.
The regulator wants to disqualify those named from managing companies as well as ask to the Court to impose financial penalties.
But Cooper said “At its heart, the case concerns allegations, which are yet to be tested in court, that the defendants failed to exercise reasonable care and diligence when approving the annual financial report for the year ending 30 June 2007.
“I would invite all fair-minded people to recognise that these are untested allegations and, at this point, only one side of the story has been told based on the information available to ASIC when they filed their action,” he added.
Cooper said he has spoken with all of the current and former non-executive directors named in the actions.
“And they intend joining me in rejecting the claims and strongly defending themselves against them,” he continued.
Earlier this month Centro formed a Special Matters Committee comprised of all directors except those named in the actions (being Jim Hall and Paul Cooper).
“This committee will deal with and determine the appropriate course of action should any issues arise in which Mr Hall or I have a conflict of interest relating to the ASIC actions,” Cooper concluded.
The first hearing is scheduled for this Friday November 20 in Melbourne’s Federal Court.
Australian Property Journal
