Menu
Liquidators' report paints dark picture of Datasouth

Liquidators' report paints dark picture of Datasouth

IT solutions provider Datasouth, which went into liquidation on March 31, owes millions of dollars to more than 80 potential creditors according to a preliminary report by the company's appointed liquidators.

Craig Melhuish and Keiran Horne, HFK chartered accountants appointed as liquidators for Datasouth, have released their first report on the company’s liquidation.

The report includes a long list of creditors but, as a preliminary document, many of the estimates are yet to be completed. The report does state, however, that Datasouth owes Ingram Micro $519,550.

Datasouth Business Solutions' deficit to creditors, subject to costs of liquidation, reaches $27,321,058. The initial estimated amount of assets available to preferential creditors, general security holders and unsecured creditors is listed in the preliminary report at $206,456, is likely to be higher.

The liquidators' report is not good news for most creditors as it states that Datasouth employees and Inland Revenue will have to be paid first. According to the report, employees are owed nearly $200,000 (gross) in total, up to $18,700 per employee.

“Subject to further verification, we estimate that there will be no funds available to unsecured creditors,” the report states.

“At this stage, there are insufficient funds to pay these preferential and secured creditors,” say the liquidators. “However recovery actions through voidable transactions and actions against certain other parties may bring in additional funds.”

The report also states that “the company was wound up by the director/ shareholder of the company”. “The director attributes the financial position of the company to the competitive nature of the industry and the departure of key personnel.”

Datasouth managing director Gavin Bennett told Reseller News the report “does not value a number of assets”. For that reason, and based on legal advice, Bennett said he couldn’t make any further comments.

Among the creditors listed in the preliminary report are government agencies including ACC; technology distributors Exeed and Synnex, and quite range of other businesses, including Fairfax New Zealand, Ltd, the company that owns Reseller News.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags liquidationdatasouth

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments