S Central founder details receivers appointment
- 01 December, 2009 11:30
S Central’s founder and managing director, Peter Mavridis, has confirmed receivers were appointed to the company’s book debts after it failed to reach an agreement over the issue with Brennan IT.
As reported previously in <i>ARN</i>, S Central and Brennan IT were in negotiations last month over who would chase up outstanding customer debts following the sale of S Central’s business assets to the managed services provider.
One week later, receivers, Deloittes, were appointed by S Central’s banking partner, NAB, to oversee the book debts.
“Brennan will assist, but they won’t be responsible for the debtors,” Mavridis told ARN. “We had discussions about Brennan doing the collection of S Central’s old debtors but couldn’t agree on that. So we have appointed Deloittes to chase the debt, letters, and so on.”
There is no timeframe for when all debts should be collected, but Mavridis was hopeful of closing things off sooner rather than later.
Finalising book debts will then allow the S Central company shell to be wound up and outstanding staff and creditors’ bills to be paid, Mavridis said. Staff and secured creditors are given first priority, followed by unsecured creditors and then shareholders.
Mavridis also claimed Brennan now retained several of S Central’s key customers, including Telstra, as well as major vendor partner, Dell. S Central maintained a services agreement with Dell for several years, and was recently appointed one of the PC vendor’s local integration partners. All customers are also being billed by Brennan.
“None of the major clients have pulled out, so we’re happy with that,” Mavridis said. The sale to Brennan should be completed today.
S Central is one of several channel companies being wound up. In November, administrators were appointed to national rival, Leading Solutions, following months of industry speculation about the integrator’s future. Niche player, ComSys, has also been liquidated.
Mavridis agreed it was an interesting time for the industry but suggested industry watchers overreacted to S Central’s demise and asset sale to Brennan. He expressed concern for S Central staff and admitted the situation had been awkward, but was confident most were now settled at Brennan.