Polly Peck wind-up bill hits pounds 33m

ADMINISTRATORS of Polly Peck, the business empire of Asil Nadir that collapsed three years ago, have run up a bill of pounds 33.7m for realising just pounds 1.7m for creditors.

The administrators, who were appointed in October 1990, said in their six-monthly report to creditors that total receipts from the fruit packaging-to-television manufacturing group were pounds 101.8m. But these were almost swallowed up by payments of pounds 100.1m in the same period, 34 per cent of which were legal and professional fees.

The administrators, Michael Jordan and Richard Stone of Coopers & Lybrand and Christopher Morris of Touche Ross, said they were sticking to an estimate made in December that creditors were likely to recover only between 3.7p and 12.5p for each pound of debt.

Polly Peck was valued at pounds 1.5bn on the stock market before it crashed in 1990, but shareholders are unlikely to see anything. The administrators were optimistic when they accepted their assignment that they could rescue many of the businesses in the group.

But despite some sales, such as the pounds 130m sale of Del Monte, obstruction from authorities in North Cyprus and Turkey has made their task difficult.

The administrators said they would ask a Turkish court on Wednesday to throw out criminal charges filed against them that were prompted by complaints from the fugitive businessman.

A Turkish public prosecutor filed breach of trust charges against them in Istanbul on 31 March.

The allegations involved a sale of land and two companies, a money transfer and other dealings in Turkey by a company, AN Graphics, that Asil Nadir says is his but that the administrators claim belongs to Polly Peck and thus falls under their control.

'The administrators and their advisers believe they have acted properly and lawfully at all times. The charges are strongly denied and will be vigorously defended,' the administrators said.

David Kidd, a lawyer for the administrators, said that a court in Istanbul would hold the first preliminary hearing on Wednesday on the charges filed in March, but it was not clear whether the case would eventually go to trial.

'We will be doing everything possible to try to persuade the Turkish judge to acquit the three of all charges . . . The hearing tomorrow is only a preliminary hearing. It's unlikely to resolve anything,' Mr Kidd said.