PSI succumbs to mounting debts

PSI succumbs to mounting debts

The hopes and dreams of Melbourne distributor Peripheral Sources International (PSI) have come to a screaming halt following the appointment of a voluntary administrator, Andrew McLellan, from accounting company Carson and McLellan PPB. PSI is believed to have outstanding debts of $720,000.

According to McLellan, the company, which had announced its plans to establish its own PC brand and chain of stores under the name 4Ware (see ARN, April 28, page 40), went into voluntary administration on July 9 after PSI managing director Paul O'Connor met with him two days prior. It is understood O'Connor had stopped trading about two weeks before meeting with the accountant to arrange the voluntary administration of his company.

McLellan told ARN that there was no stock that he expects will net any significant value and that "there are only trade debtors [that stand to lose out]".

He said that the only recommendation he will be making at the creditors' meeting will be to liquidate the company, and that creditors can expect to get "somewhere between nothing and 20 cents in the dollar for their provable debts".

It is not known how many, if any, IT resellers signed up to the 4Ware Computers vision being pushed by PSI. O'Connor could not be reached for comment.

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