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-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
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E-Store's debt in the vicinity of $2 million By Rachel Lebihan, ZDNet Australia October 10, 2001 URL: http://www.zdnet.com.au/news/business/soa/E-Store-s-debt-in-the-vicinity-of-2-million/0,139023166,120261069,00.htm
Administrators of the troubled Aussie etailer E-Store have revealed the company's debt to a pool of 80-odd creditors amounts to about AU$2 million. The draft figure was released at today's first creditors' meeting at the offices of voluntary administrator Star Dean-Willcocks. Joint voluntary administrator Ian Purchas told creditors that he has sent confidentiality agreements to about seven parties interested in acquiring the E-Store business but said it is -unlikely" creditors will receive the full amount owed to them. They are likely to receive a -number of cents in the dollar" if a deed of company arrangement is voted on at the second creditor's meeting on or around October 30, however -that figure hasn't been decided on," Purchas told ZDNet Australia. When asked if he thought it likely that the business would be broken up in an acquisition, Purchas said: -I would have thought anyone looking to buy it would do so as a going concern...with some or all of its current management and some or all of its staff." However, one creditor that contacted ZDNet said: "At this stage i can't see us getting our money back. Even if a deed of company arrangement is entered into it [E-Store] doesn't have a good reputation, who would want to buy it anyway?" In response to a number of concerned customers who have contacted ZDNet Australia about E-Store goods they have paid for and not received, Purchas said: -It's unlikely I'll be completing that transaction for them," adding that if they paid by credit card they're likely to get their money back. The E-Store business will continue as a trading administration and when asked to comment on whether or not the company had been trading whilst insolvent, Purchas said: -that will come out in our investigation report". The investigation report to creditors, which will outline details of a deed of company arrangement, will be released to creditors on October 22. Formal business attended to at the meeting included selecting a committee of creditors - to which three were appointed.
Disclaimer: ZDNet Australia has a content relationship with E-Store.
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