Mayfair has accused Dye & Co of misrepresenting the solvency of its investment holding companies and of making “unsubstantiated statements to bring into question (managing director James Mawhinney’s) integrity”.
Mayfair rejected allegations that its holding companies were insolvent on the basis that they were not operating businesses and do not trade or incur liabilities to external parties.
“The SPVs are therefore not insolvent,” Mayfair said.
“The mischaracterisation of these entities in the [report] is false and misleading. A copy of the financials can be provided to ASIC to confirm this position if required.”
The investment group has previously said that Dye & Co had a “minimal understanding” of the asset classes IPO Wealth was invested in and said trustee Vasco’s decision to appoint them demonstrated “a lack of commercial aptitude”.
“Upon closer review it is evident that Dye & Co’s reports lack the independent lens that is required by professional standards in their role as receivers & managers,” Mr Mawhinney said in August.
“Unitholders should not have to pay for a [substandard] or biased service. An independent investigation should be undertaken immediately into Dye & Co’s conduct. Unitholders may like to seek that Dye & Co’s fees are reviewed or voided completely given the circumstances.”
Mayfair made around a dozen pages of corrections to Dye & Co’s report, including that their suggestion that Mr Mawhinney had advanced money to entities which he was associated was “false and misleading” and that the investments made by Mayfair 101 were not “speculative”.
“All investments are carefully selected and fit within the group’s overall investment strategy,” Mayfair wrote.
“Due diligence is conducted on each investment prior to any investment being made.”
Mayfair also denied that there were no active markets for its shareholdings, that Mayfair had “structural liquidity issues”, and that a full return to creditors was unlikely.
“This statement is fair should the companies be liquidated,” Mayfair said.
“It highlights the importance of a structured work-out plan instead of liquidation.”
