John Valves liquidators chasing $22m

John Valves' liquidators are chasing almost $22 million in alleged losses and damages, according to a confidential letter to creditors.In the 30-page document obtained by The Courier, Stephen Dixon of BDO alleges the company may have traded while insolvent and says he has served demands on two directors.The total loss and damage claimed against one director is $16.7 million and $5.2 million against a second."At the date of this report I have not received a response to the demands," he writes.Mr Dixon also identifies transactions totalling more than $712,000 he believes may be "uncommercial"."A portion of these funds were utilised directly for materials and costs associated with the construction of a residential property," he writes."Accordingly, I lodged a caveat over this property to protect John Valves' interests. This caveat remains in place."Mr Dixon says $619,000 in invoices financed at a discount through National Australia Bank were for goods he believes were "not completed or supplied to the invoiced customer".The letter dated November 15 covers affairs of Johva Pty Ltd, formerly known as John Valves, and an associated company, Norton Villiers Pty Ltd.Mr Dixon points to alleged discrepancies in the recorded value of plant and equipment."The companies' financial statements recorded the value of plant and equipment at approximately $10.6 million," he writes."My investigation revealed that plant and equipment was significantly overvalued."An auction of plant and equipment realised the sum of $1,585,594."The letter advises of a meeting of creditors to take place on December 1.Mr Dixon did not return calls yesterday.John Valves closed its doors in 2008. More than 100 workers lost their jobs as a result of the closure of the Creswick Road factory.