Ernst & Young on Wednesday agreed to make an undisclosed “substantial payment” to liquidators of Hong Kong’s biggest ever bankruptcy, after admitting that certain audit documents were no longer reliable. Speaking in Hong Kong’s high court on Wednesday, Leslie Kosmin, barrister for liquidators Borrelli Walsh, described the settlement as “a very favourable outcome” for creditors of Akai Holdings. E&Y was Akai’s auditor before the HK consumer electronic company’s collapse. The liquidators sued the accounting firm for a $1bn negligence claim in 2002.

This entry was posted by Gwen Robinson on Thursday, September 24th, 2009 at 4:37 and is filed under Capital markets. Tagged with Akai, ernst & young. Edit this entry.