Going, going: $40m Daisytek liquidation begins

Going, going: $40m Daisytek liquidation begins

The assets of Daisytek Australia were on the block last week, as administrator PricewaterhouseCoopers moved to liquidate the company and recoup some of the $40 million owed by the failed supplies distributor.

Daisytek’s creditors, who voted the company into liquidation on July 4, had been advised to expect “between 25 and 35 per cent” of the amount owed by the distributor, PwC Associate Director, Matt Berger, said.

PwC sold Daisytek’s Queensland stationery business last week for an undisclosed sum to the original owners, the Bolton family. The administrator was also negotiating for a separate sale of the failed distributor’s NSW assets.

Daisytek’s liability to creditors was “roughly $40 million,” while its assets were worth about $30 million, Berger said.

The company owed about $11 million to suppliers. Financier GE Capital and its US parent company were both owed about $13 million. HP was understood to be the major supplier owed. Other creditors included Lexmark, Epson, Canon, Brother and Panasonic.

While the PwC brokered sale of the Queensland business was “due to complete” last week, negotiations to sell Daisytek’s NSW assets weren’t as advanced, said Berger.

“The interested party is not in IT consumables,” he said.

Daisytek’s US parent company, Daisytek Inc, entered Chapter 11 bankruptcy proceedings in May. Daisytek International followed its subsidiaries into Chapter 11 last month.

The revelation of the $13 million owed to its US parent company belies the statement of Daisytek Australia’s managing director, David Cullen, who insisted the local operation wasn’t in debt to its parent company at the time of the move to voluntary administration.

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