Qld IT Buying Group is on the slippery slide to expected liquidation after creditors this week received notice of the company's move into Voluntary Administration with debts in excess of $3 million.
Knights Insolvency Administration was appointed administrator on November 13 to investigate the company's affairs under director Scott Bernard Matthews, who has since walked away from the company.
Qld IT Buying Group is a wholesale manufacturer and distributor of PCs and peripherals, while it's division Nintaus Australia distributes a range of home theatre products.
According to the Administrator's report obtained by ARN, the company is in debt to a number of prominent companies in the Australian channel.
Knights senior accountant Steven Staatz said it carries $1.5 million in unsecured debts and owes $1.5 million to the Commonwealth Bank.
It owes Servex $452,612, Ingram Micro $239,529, Tech Pacific $205,687, Samsung $229,004, Legend $45,559, Synnex $36,333, Acheiva $23,210 and Canon $20,607. It has a total of 73 unsecured creditors.
Staatz explained the company faltered after Commonwealth Bank auditors questioned $400,000 worth of apparently invalid transactions from false invoices. "It's a criminal offence," he said.
Staatz said the company continues to trade but will "probably go into liquidation".
Knights has given notice of the first creditor's meeting to be held at its office: Level 5, Banking Annex, 345 Queen Street, Brisbane.
The first meeting on 20 November at 11am will determine if a Committee of Creditors should be appointed, while another meeting expected within a month will see creditors vote on whether Qld IT Buying Group should be liquidated.
For more information, contact Knights Insolvency Administration on (07) 3229 8627.