Daisytek creditors back in court

Daisytek creditors back in court

The liquidation of Daisytek Australia has spilled into the courts again, with two of the failed distributor’s major creditors appearing in the Federal Court yesterday.

HP is attempting to block GE Capital from claiming $4.2m from the liquidators, PricewaterhouseCoopers (PwC).

HP is appealing against a Federal Court ruling in GE Capital’s favour in June, which granted an extension for the filing of documents related to a $4.2m loan extended by the finance company to Daisytek Australia.

If HP’s appeal succeeds, GE Capital will effectively be unable to pursue the debt from liquidators, PwC.

According to PwC administrator Martin Brown, the liquidation proceedings must now await the outcome of HP’s appeal.

“It could be a matter of a couple of weeks or a couple of months,” he said.

The latest legal tussle comes as a new business interest is rising from the ashes of Daisytek’s NSW operation. Appaloosa Holdings is a newly-formed company which purchased Daisytek’s NSW assets from liquidators PwC.

The directors of Appaloosa intend to run it as a stationery distribution business, according to director Stephen Brennan.

Appaloosa acquired about $2m worth of IT consumables from the Daisytek liquidators, paying “substantially” less than Daisytek would have acquired the stock for, Brennan said.

“We’re in the process of leasing some premises at Banksmeadow,” Brennan said.

While the company had held discussions with vendors, none had been signed up yet.

Two of the directors of Appaloosa, Stephen Brennan and Ivan Hodges, are also directors of WC Penfold.

The ex-Daisytek stock had been placed on WC Penfold shops in a “agent and sub-consignee” arrangement, Brennan said.

But WC Penfold was not a shareholder in Appaloosa, he said.

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