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DMST has debts of about £1.1m

A creditors and shareholders meeting that kicked off liquidation for Distributed Micro Storage Technologies (DMST), has revealed the distributor will leave debts of around £1.1m.

Although there had been hope the business — which fell into voluntary liquidation on 6 February — could have found a buyer, a satisfactory conclusion does not appear to be on the horizon.

Mark Wilson, partner at Baker Tilley, the company charged with determining DMST’s fate, confirmed it was “entertaining offers” from parties that were interested in the various units of the business, which comprised stock, equipment and goodwill.

“We are now in the process of winding down the business, selling the assets and distributing to creditors once there is a pot of money,” said Wilson.

“In very broad terms”, Wilson revealed DMST had trade creditors of £890,000, crown creditors (Inland Revenue and Customs & Excise) of £92,000 and owed employees £50,000 “which is mainly through redundancy”.

But DMST also has two secure creditors — “a finance company in relation to book debts is owed £116,000 and a bank is owed about £140,000”.

Unsecured creditors can expect a return of “at least” 20 pence in the pound, said Wilson.

Pat Harvey, who sat at the helm of the company for more than ten years, was last week undecided whether he would remain in the IT industry.


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This was first published in March 2001

 

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