Arafura Pearls placed in voluntary administration

[KAC]

Preliminary investigations found cash at the bank had been overstated by $415,000 as of December 31, with a corresponding understatement of receivables. It also found the group's 2006 managed investment scheme inventory was incorrectly included in last year's inventory. The company's shares were placed in a trading halt on April 7. They were suspended from quotation four days later.

Full Article: http://www.smh.com.au/business/arafura-pearls-placed-in-voluntary-administration-20110422-1draq.html

 

[Mikeyy]

This seemed like just a matter of time. Not really very shocking to me.

 

[Pearly Shell]

As I recall, the accounting they were doing for inventory looked pretty sketchy last year. Do you think Paspaley would buy them out? I bet they could get a bargain price for most of their assets.