and subsequently arrested and questioned by the British police regarding the missing funds. The £2 million of the ECSC loan was actually deposited in the Northern Trust Bank as collateral for the loan guarantee, a fact unknown to the WDA and the company investors. Peters was released without charge and returned to the United States, in 1989 he would be extradited to Britain to face six criminal charges. He was acquitted in 1991 after a jury trial in the Crown Court at Cardiff, Wales. Political controversy The financial difficulties of the Parrot Corporation were scrutinised by the British Parliament and the subject of much discussion. The WDA was criticised for its involvement and perceived to have poorly invested public funds in a "murky transaction". The Secretary of State for Wales was criticised for failing to ensure proper financial controls were in place within the WDA. The police investigation, which involved officers attending the offices of Northern Trust Bank in Chicago, was criticised due to its cost, as were the costs of defending a claim against the company by Peters in the United States. The WDA was criticised for obtaining an injunction against the BBC to prevent the publication of Peters' allegations against the company and for its perceived lack of accountability to the public. The internal policies of the WDA were of concern, particularly the subsequent employment of the WDA's investment officer by the Parrot Corporation, who was instrumental in the companies' formation and funding. Changes were made by the Secretary of State for Wales to the WDA's employment policies to prevent future conflicts of interest. Bankruptcy The company suffered trading losses year on year from its inception to 1986 and its directors were confident that the commissioning of a new " diskette manufacturing line in early 1989 would provide an opportunity to produce profit. The line did not start production until late 1989 and due to these delays and the collapse of diskette prices during this period, they suffered additional financial losses. The company failed to recover its costs from the new " diskette production facility and attempts to find a buyer for the company were not successful. The company entered receivership on the 16 May 1989, with the loss of 180 jobs. The assets of the company and its trading name were sold for £1.25 million on 20 July 1989 to Arma BV. The factory that housed the