Black days for Torex Retail5 Feb 2007 11:28
LONDON (AFX) - The major lending banks to Torex Retail PLC could pull the plug on the embattled software provider in just four weeks, reports the Sunday Telegraph citing a source close to the company.
The Sunday Telegraph says Torex, which is under investigation by the Serious Fraud Office, the Financial Services Authority and the London Stock Exchange, is under "considerable pressure" to show it is good for around 180 mln stg of bank debt.
Torex last weekend appointed accountancy firm Deloitte to conduct a review.
Meanwhile, the Sunday Times reports that a dossier detailing five serious allegations against the former chairman of Torex Retail, Chris Moore, and other directors has been handed to the Serious Fraud Office by the company's suspended chief executive.
It says Neil Mitchell, who was suspended from the retail software supplier last week and has turned 'whistleblower', has provided a series of case studies to support his allegations of falsified accounting and money laundering.
Within three days of receiving the dossier, the SFO raided Moore's home and those of two other individuals, the report says.
The Mail on Sunday says fraud detectives investigating the group are looking at an alleged conspiracy to manipulate accounts in order to sell it at an inflated value.
It claims the Serious Fraud Office is looking at how executives handled a series of mergers and acquisitions.
Torex could not be reached for comment.