Customers-direct and indirect-of Edge Technology were scurrying for their computer warranty documentation last week following the collapse of the computer vendor and distributor.
According to the receiver, Armstrong Wiley and Co., Edge's debts total somewhere around AU$40 million, while its assets are estimated at AU$4.5 million.
At the first meeting of creditors last week, when the appointment of the receiver was confirmed, it was revealed that AU$1 million was reserved for the only secured creditor, financier Cash Resources Australia and AU$500,000 was being allocated to staff entitlements.
According to one of the major creditors at the meeting, the current whereabouts of the founder and director Johnson Wang is unknown to the receiver.
There was also some confusion about the identity of the other director-believed to be Wang's wife, Phenia Wang-and the recent role in the company of Delphia Lai, another relative of Johnson Wang.
It is likely that the receiver will review some recent transactions to ensure that the company was not trading whilst insolvent. One such transaction, which was brought to light at the creditors' meeting was described as "a non-standard transfer of inventory to Edge New Zealand".
A list of approximately 80 creditors has been produced, headed by Microsoft Australia, which was said to be owed between AU$17 and AU$18 million.
While a Microsoft spokesperson refused to comment on the debt, she confirmed that it was pursuing separate legal action. Industry sources said that this legal action includes matters relating to licensing issues.
And reports attributed to some of the company's army of resellers by a prominent channel publication were ominous.
"Why should we pay what we owe when we may have to pay for all the failed products during the warranty period?" one reseller was reported to have said.
The next meeting of creditors has been scheduled for July 5, but they are not optimistic about retrieving much of their debts. The mood was summed up by one of the creditors, who did not wish to be named, but said, "Through me, Wang's got a lot of cash out of my company."
