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IBM takes its largest NZ reseller to court

IBM takes its largest NZ reseller to court

IBM New Zealand has initiated legal proceedings against Computer Systems Integration (CSI) in an effort to see the reseller forced into liquidation for its failure to clear debts to the vendor.

Sources in contact with NZ Reseller News, a sister publication of ARN, claimed that CSI owes IBM $6 million. The debt is believed to have prompted the sale of CSI, which was bought by Logical Networks earlier this month.

Confirming the application, an IBM spokesman said, "IBM New Zealand has lodged an application with the High Court in Wellington for CSI to be put into liquidation, following CSI's failure to satisfy a statutory demand for amounts owed to IBM New Zealand."

IBM filed the application against the vendor's largest local reseller and Premier Partner on October 14. The case will be heard at Wellington's High Court this week.

Logical did not inherit the debt as part of the purchase agreement. The previous owners - father and son Brian and David Heald - will maintain management roles with the company for one year under Logical's ownership.

Earlier this month, Logical Networks bought long-time IBM-centric systems integrator CSI for an undisclosed sum. CSI had been financially weak of late, making it a takeover target. "The company took its hits in the post-Y2K slump," Logical chief executive officer Murray Jurgeleit said at the time. "It has been profitable, but marginally so."

NZ Reseller News was told the CSI operation will be consolidated into Logical when the integrator moves to its new premises in Wellington, the former Hewlett-Packard building.


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