S Central and Brennan IT deal delayed
- 08 December, 2009 11:55
- Comments 4
Final sign-off for the sale of S Central’s business assets to Brennan IT has been held up as issues between the integrator’s book debt receivers, banking facility and directors are debated.
Brennan IT managing director, Dave Stevens, confirmed the deal had undergone several delays and was not yet completed, but remained confident it would eventually gain the tick of approval.
S Central announced the sale of its business assets to Brennan on November 2. It was initially expected to be completed shortly afterwards.
Negotiations over whether Brennan would assume responsibility for chasing up S Central’s debts eventually stalled and receivers, Deloittes, were brought in across book debts on November 20.
“The thing hindering it up are the complexities between NAB, Deloittes and S Central directors,” Stevens said. He declined to detail any specifics of those discussions.
“We are progressing regardless of completion – we’re not relying on the agreement being executed, we’re just getting on with the job of servicing customers.
“We want to get it done, but there are parts of the business working to a different timetable than we are.”
In the meantime, S Central staff have transferred over the Brennan.
Stevens said he was also seeking legal advice in an effort to gain more information and closure for employees with outstanding entitlements through the Government’s GEERs program.
Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.
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Comments
Anonymous
Staff
Why do we keep hearing the generic statement that S Central Staff have "transferred over to Brennan"? It's incorrect. For example in Qld, less than half the staff moved to Brennan. The majority chose not to move across as our entitlements were not going to be honoured and there was no difference in moving to a different company. Hence we have found places elsewhere. This wasn't "negotiated" as part of a company wide deal. How could S Central do that with no recognition of our outstanding wages, annual leave, super, etc.
Any form of communication by S Central to its former staff on our entitlements since our employment was "ceased" has been zero!
It's amazing that employees can be treated in this manner without any kind of government watchdog or ombudsman to assist. We are in the situation where we need to obtain independant legal advice at our own cost to recover money we are clearly owed.
Shouldn't ASIC, GEERS, Fair Trading etc. be protecting the employees interests in ensuring our entitlements are paid rather than waiting on advice from an organisation that has clearly placed its employees as a distant thought.
Anonymous
"Stevens said he was also seeking legal advice in an effort to gain more information and closure for employees with outstanding entitlements through the Government’s GEERs program. "
I think all he'll discover is that you are in breach of your duties as director, if you are unable to pay your creditors when they fall due. I think its called Trading why insolvent. The fact that staff we're not paid when they should have been indicates there was definitely a cash deficiency and that the business should have bene put into administration immiediately so that creditors, especiallay the employees (not just the NAB) could get the best return for their dollars. The implication that employees will still need to go through GEERS clearly means that most creditors (except the securitised banker) will get shafted in someway
I feel really bad for the employee that has to sit opposite Mr Mavridis for the next 3 months in the Brennan offices, without his entitlements.
Pretty wrong if you ask me
Anonymous
Incompetant Staff Not offered a job at Brennan
Come on what a slly comment. Everyone knows the incompetant staff didn't go across to Brennan. When you have 90% of the workforce offered jobs the other 10% are duds being cleaned out.
Queensland was a businees S Central apparently picked up for nothing and run poorly. That was the case until S Central brought in an experienced bloke to clean it up and change it.
At least Brennan offered everyone their same salary level, if you didn't get a job there how much of a pay cut have you taken?
Anonymous
Na I have had legal advice and we get paid before creditors. do your research!