Adler Group SA said winding up the company is one possible outcome of a strategic review initiated after it was unable to refute short-seller allegations of fraud.

Chairman Stefan Kirsten, brought in this year to help restore investor confidence, said he sees “limited potential for recovery” as long as Adler doesn’t have auditors and a probe by financial watchdog BaFin continues.

“This strategy project is just being initiated,” Kirsten told German daily Boersen-Zeitung. “The spectrum ranges from liquidating the company, i.e. breaking it up, to positioning it in a clean strategic niche.”

Adler has been in turmoil since a scathing report by short seller Fraser Perring in October. Its auditor KPMG refused to endorse its annual accounts and eventually quit, after a forensic probe was unable to refute the accusations. Perring argues the company has been run for the benefit of a few investors including Cevdet Caner, whose family owns a minority stake, at the expense of other shareholders and bondholders.

Caner has denied the allegations. Adler, which has argued that the probe didn’t find evidence of the type of systemic fraud alleged by Perring, has sold off large chunks of assets to shore up liquidity. Without its auditor’s backing, Adler is shut out from banks and markets for funding, leaving only more disposals in a business where scale is paramount.

Shares of the landlord fell 10% at 11:18 a.m. in Frankfurt, reaching a record low and bringing declines over the past year to 83%.

“Adler has a decent liquidity position,” Kirsten said. “Our largest shareholder Vonovia SE has said in no uncertain terms that the share price does not reflect the substance of the company.”

The company announced on Thursday that it sold a portfolio of 1,200 Berlin commercial and residential assets to a joint venture partner at a price 2% below book value. The disposal will generate about 170 million euros ($177.5 million) of capital inflow.

Kirsten in the interview dismissed bondholder concerns over cash transfers from Adler Real Estate to the parent company.

“If someone now complains that they are less secured in the event of a default, my response is: That is not a legitimate interest of a bondholder of Adler Real Estate,” he said in the interview.

This article was provided by Bloomberg News.