Clive Peeters back trading today, MD refutes media speculation

By Patrick Avenell

MELBOURNE, VIC & SYDNEY, NSW: Clive Peeters is back trading on the Australian Securities Exchange today. This news was delivered by ASX manager, issuers, James Gerraty late last night, shortly after Clive Peeters MD Greg Smith released a statement updating the market on the investigation into the group’s missing millions.

In this statement, Smith said that the amount of money recovered from the sale of properties purchased through misappropriated funds is expected to be in excess of $16.4 million. This figure will be short of the total cost of this exercise, which Smith itemises as $19.4 million in embezzled funds and $1.8 million in legal, investigation and other costs associated with the recovery.

This $4.8 million shortfall in recovery will be borne by the FY09 balance sheet, which is expected to now have a revised operating loss of $11.4 million before tax. In his report on the revised FY09 figures, Smith makes it clear that notwithstanding this incident, “all trade creditors have been paid on CPR’s normal commercial terms”.

Due to the peculiar nature of this occurrence, Clive Peeters has been the subject of many news stories, with coverage extending out of the specialist and trade titles and into the general press. Smith believes that the media’s coverage of this episode has included a number of inaccuracies.

In his statement today, Smith said that contrary to reports by other news agencies, Clive Peeters did commence civil legal proceedings against the accused staff member, Victorian Police were alerted to the matter “promptly”, and that no deal had been done between Clive Peeters and the alleged thief in reference to possible criminal proceedings.

Current.com.au will follow Clive Peeters first day back trading closely.

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