Administrator PPB identifies breaches by Gunns' former directors FORMER directors of failed timber company Gunns face investigation into whether the company traded while insolvent, used third party funds for cash flow and breached duties to plantation growers. A report to creditors by administrators PPB Advisory identifies these "potential breaches" of director duties and suggests they be further probed by a liquidator. A meeting of Gunns creditors next Tuesday will vote on PPB Advisory's recommendation in the report that the collapsed timber company be placed into liquidation. PPB Advisory, appointed administrator in September last year after Gunns failed to secure an equity investor amid high debt and a prolonged trading halt, said that its investigations into the company were ongoing. However, it said the company may have been trading while solvent as early as March last year, when the Singapore-based Richard Chandler Corporation withdrew a $150 million investment offer. "As we are yet to form a conclusive view on the date of insolvency, we are unable to state definitively whether the Gunns Group traded whist insolvent," the report concludes. Additional investigations will be required by a liquidator (if appointed) before a view may be formed. The report said unsecured creditors, which are owed a combined $135m, will receive nothing, while outstanding employee entitlements of $10m are expected to be met. It concluded that a banking syndicate would recoup some but not all of $446m still owed to it, but offered no certainty for $190m owed to other secured creditors.