BCN debts hit $4 million

BCN debts hit $4 million

BCN Technology's demise has left its creditors $4 million out of pocket.

Insolvency practitioner, O'Brien Palmer, was appointed as administrator to the company on August 4 following its closure on July 31. Co-administrator, Bryan Collis, said BCN owed about $4 million to 50 creditors.

Six of these were owed large sums of money, he said. It is understood LG is the largest at almost $1.5 million.

Collis estimated about 25 employees were also owed redundancy payments.

The first creditors' meeting was held on August 10. A second is scheduled for August 30. In the meantime, administrators are preparing a report determining the value of assets.

"The directors closed the doors because the company was not profitable, appointed us as administrators, cut off staff and left virtually no stock in the warehouse. There's no business left to sell," Collis said. "Because of the way BCN has been rundown over a period of time, there isn't much remaining. A number of staff had already left, taking customers with them."

Collis said it would like to hear from anybody who was interested in buying the remaining stock and relevant IP.

As previously reported in ARN, many of BCN's vendors had stopped credit over the past two months. Several partners, including Swann Communications and ThermalTake, said they were awaiting payment for former consignments. Other vendors working with BCN included Mitsubishi, Cherry, LeadTek and MSI.

In the meantime, rival distributor, Anyware, has announced it will extend its ThermalTake warranty and RA services to all former BCN customers with proof of purchase. Resellers will be required to pay all freight costs.

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