Director out as Aero’s bank calls in KPMG
AERO Inventory, a parts supplier for the airline industry that was contemplating a move from the junior market to a full listing less than two months ago, yesterday ended up in the hands of the administrators.
Accounting group KPMG yesterday took control of the group on behalf of a group of banks led by Lloyds TSB who are owed more than £300m by the company.
The firm was run by Rupert Lewin, a former corporate broker for merchant bank Robert Fleming, who had his contract terminated last week along with two other directors.
Yesterday finance director Hugh Bevan resigned with immediate affect.
The company’s troubles came to light after a financial review found a problem with the value of the group’s assets.
The group’s stock was valued at $780m (£471m) but this figure is now being downgraded following a decision by the group to restate the last two years’ figures.
KPMG is now reviewing the value of the stock as well as the accuracy of recent figures.
It is also examining the conduct of all the group’s recent directors, including Lewin, who was paid £1.6m last year.
KPMG’s appointment came after the group warned it would breach its banking covenants by not publishing its accounts on time.
Deloitte has previously been the firm’s auditor but in recent weeks Ernst &Young was drafted in to conduct a forensic review.