A report was sent to creditors yesterday ahead of next week's second creditors meeting in Launceston.

The document, by administrators KordaMentha, said investigations were continuing into three possible offences. These were making improper use of position to gain an advantage, making improper use of information to gain an advantage, and being director at the time when an insolvent company incurs a debt and there are reasonable grounds for suspecting that company to be insolvent.

Concerns have been raised about salary and termination payments made to ACL directors from July 2008 as well as the dispersal of the Federal Government's $5.5 million grant, which was received by the company on July 8.

By August 14, ACL revised its budget forecasts to show that it would run out of cash during October.

ACL went into administration on August 26 and receivers and managers were also appointed to restructure the business for sale.

Voluntary redundancies will be announced tomorrow and forced redundancies will follow next week as receivers reduce the 270-strong workforce by up to 120.

KordaMentha's report showed that ACL's total assets were $12.7 million but it owes an estimated $25.2 million in employee entitlements and $9.2 million to unsecured creditors.

The report gives an outline of events leading up to administration from the point of view of directors - from the demise of its subsidiary National Parts and the reduction in funds available from GE to issues with trade credit insurance and adverse effects of the global financial crisis and strengthening Australian dollar.

KordaMentha said that its investigations were continuing, with potential offences to be further investigated by a liquidator.

A second creditors meeting will be held next Wednesday at the Hotel Grand Chancellor in Launceston.

KordaMentha said ACL should be wound up and placed into liquidation to best realise any of the ACL Group's assets remaining at the conclusion of the receivership.