The chances of debt recovery for the 1600 creditors left out of pocket after the collapse of Sydney-based Empire Systems is minimal, despite the recent sale of office equipment and the defunct reseller's customer database.
With a total of $3.5 million owing, investigations are continuing into whether any of the $16 million worth of transactions that occurred in the six months leading up to the appointment of administrators were preferential and therefore recoverable. These included payments to suppliers and the shuffling of funds between internal bank accounts as well as $500,000 that went to what the report to creditors describes as "related parties".
Chris Palmer, a chartered accountant liquidating the assets of Empire Systems, told ARN that all the money recovered to date will probably only just cover costs and expenses he has incurred since being appointed, firstly as an administrator earlier this year and then liquidator on May 12.
"The only way there will be a dividend paid to the creditors will be if I am successful in recovering any monies after conducting a detailed inquiry into the company and the conduct of its directors," said Palmer.
Sydney-based service company Mobile Computer Services (MCS) has paid an undisclosed amount for the 12,000 to 15,000 names that were stored on Empire's customer database and is offering them all a 20 per cent discount off their first invoice.
According to Rick Macri, MCS' managing director: "There are a lot of dissatisfied corporate, government, small business and family customers from Empire's demise and we will do our best to satisfy their service needs."
Servicing all brands and platforms as well as sub-contracting for other companies in the channel, Macri said that MCS can offer Empire's former customers, "very good reliable service and nothing but quality components".
Mobile Computer Services
Tel (02) 9817 0544
Fax (02) 9817 0998