INVESTORS in six of Palandri Wine Group’s managed investment schemes look set to lose about $160 million after administrators Deloitte applied to the courts to wind up one of the group’s companies, PWL, last week.

The Sydney Morning Herald reported that Deloitte said in a statement on Friday that PWL, the responsible entity of the schemes and other companies in the group, was insolvent.

The application to wind up the company was made to the Supreme Court of Western Australia last Friday, August 15.

The administrators, John Greig, Neil Cussen and Gary Doran from Deloitte, found that all the MIS are either insolvent on a cash-flow basis, a balance sheet basis or on the basis of the accounts kept by PWL, have no assets or liabilities.

The statement said a successful application to the court would allow it to complete the sale of the Palandri Wine Group’s vineyards at Margaret River and Frankland River but it was highly unlikely that scheme members would be eligible for any proceeds from this sale.

“The investigations found that all the MIS are either insolvent on a cash-flow basis, a balance sheet basis or on the basis of the accounts kept by PWL, have no assets or liabilities,” Deloittes said

“Further, MIS involving the growing of grapes would require members to pay more funds than they are likely to receive in revenue for the remainder of those MIS.

“As a result, none of the MIS have the working capital required to continue to operate, and the administrators are not aware of anyone who would be willing to contribute sufficient working capital to resolve the situation.”

The voluntary administrators say they have been unable to find a suitable replacement responsible entity for the schemes.

“(We) consider the prospects for finding such a replacement to be very low,” Deloitte said.

The next hearing of the application is scheduled for September 3.

The administrators took control of Palandri in February.