Comsys liquidation to burn one large creditor

Comsys liquidation to burn one large creditor

Less than $0.50 in the dollar return expected for one creditor's $80,000 investment

The liquidation of managed services provider, Comsys, should result in a full pay out to employees, but ordinary creditors will not be so lucky.

Comsys went into voluntary liquidation late in October, having been deemed ‘hopelessly insolvent’ and unable to pay staff due to cash flow problems.

Co-liquidator, Steven Kugel of CRS Warner Kugel, said the first creditors’ meeting had been held, but only the director and one other significant creditor attended.

That creditor had an $80,000 stake in the company. Kugel said there were about 30 creditors in total, but most were owed relatively small amounts, ranging from $500 to $5000.

“The director has put in a large claim that he is the largest creditor for the company,” Kugel said. “It’s still very early stages, so that still needs to be determined.”

Early indications are that Comsys’ staff will receive a full 100 cents in the dollar owed to them, however, Kugel had a much less optimistic view for the creditors.

“I can’t give an exact figure at this stage, but ordinary creditors will almost definitely see a return of well under $0.50 in the dollar,” he said.

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