Former employees and a founder of the Australian vitamin maker Pan Pharmaceuticals have gone to court in a bid to overturn a decision earlier this week to liquidate the company, according to national press reports.

Pan Pharmaceuticals had its manufacturing licence withdrawn in April after Australia's medicines control agency, the Therapeutic Goods Administration (TGA), found serious breaches of quality and safety at a plant, including products contaminated with unlabelled ingredients. The company was Australia's largest contract manufacturer of complementary medicines including herbal, vitamin, mineral and nutritional supplements.

Creditors KPMG rejected a final rescue bid from founder Jim Selim and another partner on Tuesday. But Selim has joined the Australian Workers Union, representing 128 Pan employees, in court to dispute the creditors' vote.

Selim could face legal action to recover up to A$100 million (€60m) if liquidation of the company goes ahead, according to the AAP. His rescue proposal involved contributing A$3 million to the funds to be paid to creditors in exchange for his release from risk of litigation.

A decision on Pan's licence is expected next week after TGA inspection of the firm's factory. Around 1400 products made by the firm have been recalled since April.