The future of Landis is hanging in the balance this week as its
management waits to see if vendors have approved a creditors' deal
to save the group from administration.
Landis, which was left in the lurch by Westcon's decision to break
off acquisition talks late last month, wrote to vendors last week
asking them to approve a 25 pence in the pound deal which would
effectively create a creditor voluntary arrangement.
The company also said the proposal had to receive support from 90
per cent of vendors before a deadline of 29 March - a bank holiday
across Europe.
If the plan receives enough support, Landis will press ahead with
its aim to refocus as a networking services group and sell its
distribution arm.
If vendors do not pass the proposal, Landis' management could have
no choice but to put the company into receivership and vendors may
see a return far below the 25p in the pound on the table.
One industry insider told
MicroScope he did not believe the
vendors would agree to the deal. "These kind of things never work
because they require full support.
Landis is not offering this, it is demanding it and people don't
like being mugged," he argued.
But a source within Landis in the Netherlands claimed the company
was seeing "good support" from vendors despite the low terms.
"We are confident and we will fight. This is not the end of
Landis," he insisted.
Asked what would happen if creditors rejected the proposed deal,
the source prophesied: "It's goodbye to Landis."
Meanwhile, potential buyers for the Landis distribution business
were waiting for the outcome of the creditor vote.
One well-placed industry source claimed broadliner Tech Data was
attending talks with the Dutch company's management last Thursday.
"Tech Data looks at everything that is consistent with the
direction it is moving in.
It may look at bits of [Landis] on a piecemeal basis," the source
commented.
The options
1. Another company steps in to pick up the distribution
business
2. The distribution arm is put into receivership
3. Another company buys the business from the receivers
4. The plan to keep Landis running as a services group is
dragged down by the failure of distribution
5. Individual country-by-country management buyouts