The Feltex Debacle: New Zealand’s Enron? – by Sue Newberry24th July, 2017
Sue Newberry is Associate Professor of Accounting at the University of Sydney, and a member of the New Zealand Institute of Chartered Accountants.
The collapse into receivership of Feltex Carpets Ltd continues to produce waves of concern [in New Zealand]. Shareholders have commenced a class action against its directors; there have been Securities Commission investigations. This December 2007 article gathers evidence that the Securities Commission has not adequately scrutinised the behaviour of Feltex or its auditors; that Feltex was misleading in reporting its financial situation to its current and prospective shareholders at crucial times; and questions the quality of the work of its auditor, Ernst and Young.External Link: http://www.scoop.co.nz/stories/BU0712/S00076/the-feltex-debacle-new-zealands-enron.htm