Friday, February 29, 2008

The Eye of The Storm

It seems that the ICAEW will soon find itself at the eye of the Northern Wreck storm, as the government has asked it to advise on who (firm of individual) should be appointed as "adviser" for determining the "value" of Northern Wreck.

The bill to nationalise the bank, the Northern Rock Compensation Scheme Order, notes that the ICAEW will have the final say on who will act as "adviser":

"Before making any appointment the Treasury must consult the Institute of Chartered Accountants in England and Wales."

Given that the valuation will determine the compensation that the increasingly desperate shareholders are to receive, the role of "adviser" is considered to be a poisoned chalice.

Whoever accepts the role is likely to find themselves the subject of litigation by the shareholders, keen to take as much from the wreckage as possible.

Phrases "touch it" and "bargepole" are rumoured to have been used by possible contenders.

Good luck to the ICAEW on this.

I am happy to offer my valuation services, and save everyone time trouble and expense.

After due thought and consideration, the estimated value of the Wreck is approximately zero!

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