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Director out as Aero's bank calls in KPMG

David Hellier
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AERO Inventory, a parts supplier for the airline industry that was contemplating a move from the junior market to a full listing less than two months ago, yesterday ended up in the hands of the administrators.<br /><br />Accounting group KPMG yesterday took control of the group on behalf of a group of banks led by Lloyds TSB who are owed more than &pound;300m by the company.<br /><br />The firm was run by Rupert Lewin, a former corporate broker for merchant bank Robert Fleming, who had his contract terminated last week along with two other directors.<br /><br />Yesterday finance director Hugh Bevan resigned with immediate affect.<br /><br />The company&rsquo;s troubles came to light after a financial review found a problem with the value of the group&rsquo;s assets.<br /><br />The group&rsquo;s stock was valued at $780m (&pound;471m) but this figure is now being downgraded following a decision by the group to restate the last two years&rsquo; figures.<br /><br />KPMG is now reviewing the value of the stock as well as the accuracy of recent figures. <br /><br />It is also examining the conduct of all the group&rsquo;s recent directors, including Lewin, who was paid &pound;1.6m last year.<br /><br />KPMG&rsquo;s appointment came after the group warned it would breach its banking covenants by not publishing its accounts on time.<br /><br />Deloitte has previously been the firm&rsquo;s auditor but in recent weeks Ernst &amp;Young was drafted in to conduct a forensic review.