Now Slater and Gordon’s lenders want to see the books
Topics: Alternative business structures
Listed Australian firm Slater and Gordon’s lenders have invited independent auditors to scrutinise its accounts.
In a statement to the Australian stock exchange today, Slater and Gordon confirmed the appointment of McGrathNicol as independent adviser to its banking syndicate.
The Australian newspaper has reported that the advisory firm has been appointed by lead financiers National Australia Bank and Westpac to look at revenue and profit figures for the law firm.
Slater and Gordon admitted in December that it was downgrading its profit forecasts after slower case resolutions than expected.
The firm had already seen its share price value plummet following George Osborne’s proposals to reform the personal injury sector, and still faces an inquiry from the Australian Securities and Investment Commission into its financial reporting activities.
In its statement today, group managing director Andrew Grech said it was agreed when the firm reviewed its forecasts that the banks would appoint their own advisers.
‘The company has continued to work collaboratively and cooperatively with the banks and our advisers,’ added Grech.
Slater and Gordon reiterated it has more than A$100m (£48m) ‘headroom’ within its banking facilities, a figure expected to increase as the financial year progresses.
The company’s share price dropped by 86% in 2015 and has continued to struggle since the turn of the year. Its share value fell almost 4% today to A$0.725 per share.