Landis stuns vendors with CVA plan

The future of Landis is hanging in the balance this week as its management waits to see if vendors have approved a creditors'...

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

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