Siltek administration enters final phase

Siltek administration enters final phase

The fire sale of stock at troubled distributor Siltek has raised over $2.4 million for the administrators, with the remaining inventory being again discounted this week before going to auction in a fortnight.

According to Peter Rodowicz of accounting firm Prentice Parbery Barilla - the company handling the administration - the process is going "particularly well" and a decision regarding the ultimate fate of Siltek is "imminent".

"We have another $1.8 million of stock to discount," Rodowicz said. "That is its full value, but we will probably only realise about 40 cents in the dollar for that.

"Whatever we get out of the next fortnight, plus the auction, will be the last assets sold and then we will tidy it all up. In terms of realisation, compared to what we thought we would get, it has been one of the most successful assets sales I have heard of that has been undertaken by anyone in [the IT] industry this year."

Rodowicz said all secured creditors will receive "their full return" and unsecured creditors "will get some distribution", but he was unsure as to exactly what that might be.

Staff were considered to be "preferential creditors" according to Rodowicz and they can also expect some as yet undetermined distribution.

"At this stage it is looking good," he said. "Based on the the estimates we received when we went in compared to what we have realised, [staff] will be getting more than we thought they would.

"We are still asking the principals in South Africa to make contributions to certain creditors - including staff entitlements."

Rodowicz said there will be an extraordinary general meeting "in about a fortnight" to inform staff and creditors of the state of play. A decision regarding the fate of Siltek will be made pending the outcome of the meeting.

"Remember, the business is under voluntary liquidation so at the EGM either the creditors will decide to liquidate the business completely or they may continue the voluntary administration a little further.

"Our stakeholders are the creditors, so we will be going to them with the state of the play and making a recommendation. They will then vote on what happens next.

Enquiries about the $1.8 million worth of remaining stock and the subsequent auction should be directed to Johnathon Levin or Derek Mittingham on (02) 8970 3539.

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