Daisytek saga draws to a close

Daisytek saga draws to a close

Liquidators of failed office products distributor, Daisytek Australia, have finally closed the company books after three years of labour.

Liquidation manager at PricewaterhouseCoopers, James Monday, said creditors had received $0.615 for every dollar owed. According to original estimates, the distributor's liabilities were $40 million. Its assets were valued at $30 million. Creditors had initially been advised to expect between 25 per cent and 35 per cent of the amount owed.

"It's rare to get more than $0.50 in the dollar with these actions so it is a good end for the business," Monday said. "We have distributed and realised all assets either by sale or by collecting debts."

Daisytek Australia went into administration in June 2003. The action followed the collapse of its US parent company, Daisytek Inc. It was subsequently put into liquidation in July 2003. Its major creditors were GE Capital and HP. Others included Panasonic, Canon, Lexmark, Brother and Epson.

A legal battle then ensued in the Federal Court after GE Capital tried to block HP from claiming $4.2 million from Daisytek's liquidators.

Monday confirmed all legal disputes had been resolved. The bulk of Daisytek's stock was picked up by WC Penfolds. Its Queensland stationery business was sold to former owners, the Bolton family, while the NSW business went to Appaloosa Holdings.

The final creditors meeting of Daisytek Australia will be held on August 11 at PricewaterhouseCooper's Sydney offices. The agenda would be to present its report on the wind-up process, Monday said. Once completed, the company would be deregistered by the Australian Securities and Investment Commission.

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