Administrators for SA-based PC assembler, Microbits, have warned creditors are unlikely to recoup funds from the sale of assets.
One creditor, who asked not to be named, claimed unsecured debts totalled $1.4 million. Secured creditor, National Australia Bank, is owed about $400,000. The creditor claimed administrators had forecast a miserly return of $0.14 in the dollar.
Accountancy firm, Edward Marshall, was appointed as voluntary administrator on June 14. Microbits subsequently went into liquidation on July 14. According to administrator reports to the AdelaideNow newspaper, the business had about 50 creditors. It employed 40 staff.
Administrator, Hugh McPharlin, said it had been unable to sell the company. It was now working through the liquidation process in an attempt to recover funds for creditors.
"What I can say is there's a substantial deficiency of assets to cover the company's liabilities," he said.
McPharlin refused to comment further.
Microbits was established in Adelaide by Max Mentiplay in 1983. Its primary business was assembling and supporting PCs for the public and education sectors. Its closure came three months after the company lost its position on the SA whole-of-government PC, notebook and server panel.
At the time, Mentiplay told ARN state government hardware represented 30 per cent of its business. He said the company would look at new areas like AV and desktop management services in an attempt to survive.
Microbits picked up local distribution rights to desktop management products from US-based vendor, Ardence, in May. It held direct reseller relationships with Apple, Dell and Acer.
ARN was unable to contact Mentiplay at the time of going to press.