BrunoWeltmann - stock.adobe.com

Entatech creditors set to get something back from failed firm

The administrators report indicated that once a freehold has been sold in Telford unsecured creditors will get some money back

The administrators of Entatech are hoping to be in a position to pay between 35-45 pence in the pound to unsecured creditors.

The firm has paid two of its three secured creditors in full and should be in a position to pay off the third when it sells the freehold on the firm's Telford operation.

The final report from KPMG, which was appointed as administrators back in May, revealed that the firm has been moving into Creditors Voluntary Liquidation (CVL) to pay out a final dividend to creditors and progress had been made trying to pay back those that were owed money at the time of the collapse.

Once the CVL status is reached KPMG will cease to act as administrators and it has filed the final report to cover the period from 8 -22 November.

The report stated that offers had been made for the freehold property and a preferred bid had emerged but had not been revealed at this stage. The report also shared details of the stock being acquired by GNR Technology.

In the report Chris Pole, joint  administrator at KPMG, stated that unsecured creditors would be receiving something back from the failed firm.

"We anticipate the unsecured creditors will receive a dividend of between 35-45 pence in the £, however this will be dependent on the timing and realisations achieved for the freehold property and conclusion of all asset realisations and associated costs," the report stated.

Of the three secured creditors  - Changtel, RBSIF and Lombard - only the last one remains unpaid with that money coming once the freehold property is sold.

Entatech called in KMPG after a potential sell-off to Beta Distribution collapsed and the business was overwhelmed by ongoing business challenges.

Read more on Finance and Credit

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly.com

SearchITChannel

Close