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UPDATE: Administrator pleas reopen accounts with CHA

UPDATE: Administrator pleas reopen accounts with CHA

In an attempt to maintain the belegured CHA distribution business as a viable operation, administrators Ernst and Young have written to creditors asking for the re-establishment of trade.

In a letter leaked to ARN, CHA administrators asked that a new account be opened in the name of "Computer Hardware of Australia Pty Ltd (Recievers and Managers Appointed)", and that supply be maintained. Although the letter guarentees payment for any product received after the appointment of the administrator, it makes no guarantees regarding outstanding debt accumulated by CHA prior to the company's slide into administration.

"Please note that any purchases or sales made after [the administrator's] appointment cannot be offset against any purchases or sales made prior to [their] appointment," the letter states.

The letter requests that the two accounts be kept separate to "enable payment within normal terms of trade".

The letter makes it clear that the administrators are attempting to hold the company together in order to sell the business as an ongoing concern.

"At this stage [the administrator] will continue to trade the business of the company with the intention of realising a sale of the business," the letter says.


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