Consultancy Ernst & Young is being investigated over why it handled the administration of Greek mobile operator Wind Hellas when it had a long-standing relationship with the group.
Bertrand des Pallieres, founder of hedge fund SPQR Capital, is reported…
Consultancy Ernst & Young is being investigated over why it handled the administration of Greek mobile operator Wind Hellas when it had a long-standing relationship with the group.
Bertrand des Pallieres, founder of hedge fund SPQR Capital, is reported to have called on the Institute of Chartered Accountants in England and Wales to launch the inquiry.
SPQR Capital and other Wind Hellas junior lenders lost millions after Egyptian tycoon Naguib Sawiris was able to scrap £1.3bn of its debt to bondholders when he acquired the group out of administration last year.
In a letter cited by news reports to E&Y partner Maggie Mills, who led the “pre-pack”, the Institute suggests that she should have declined or resigned from her post because of a threat to objectivity.
E&Y has reportedly served as an auditor to several other telecoms assets owned by Sawiris.
A spokesman for E&Y declined to reveal the contents of the letter, but said: “The Institute investigates all complaints from the public and we will respond to any enquiries raised with us.
“The relevant matters are confidential and, therefore, we cannot comment further.”
Calyon advised Sawiris holding group Weather Investments on its acquisition in early 2010 of Wind Hellas, the sale of which was run by Morgan Stanley.
In January this year, Wind Hellas’ senior bondholders completed their takeover of the asset, having agreed to invest E420m to repay debt and fund its long-term development and business plan.
This investment also freed the group from E1.867bn of third party debt, allowing it to come under the ownership of a newly established holding company called Largo Limited.
Wind Hellas’ new owners, who were advised by Moelis & Company, include Anchorage Capital Group, Mount Kellett Capital Partners, Eton Park International, Taconic Capital Advisers, MBSP and PEP TMT SSF Cayman and Angelo Gordon & Co. Morgan Stanley managed the sale.
