Administrators seek to wind up Picton Press

Administrators seek to wind up Picton Press
Troubled WA printer Picton Press is facing wind up action from its own administrator

Picton Press is again facing wind up action, this time from the administrators that designed a controversial Deed of Company Arrangement that allowed the indebted business to continue to trade.

The directors of Picton Press put the business in voluntary administration in May 2018 with $9m debts, including $3.5m to unsecured creditors, $1.3m in tax and $660,000 in outstanding staff pay and superannuation.

Cor Cordis liquidator Jeremy Nipps was appointed as administrator with creditors ultimately voting in favour of his Deed of Company Arrangement (DOCA) that meant unsecured creditors owed less than $10,000 would receive full payment and those exceeding that, including the Australian Tax Office and paper suppliers, would get just one to two cents in the dollar.

It also meant 30 employees would continue to have jobs.

The DOCA was voted on in November 2018 with the first $205,000 instalment of creditors money paid into a trust account four weeks after the vote. A further $275,000 was due to paid into the trust account on November 28, 2019, a year after the agreement was reached.

The first instalment was paid but wind up action that was then launched the ATO meant the money could not be transferred to creditors effectively putting the whole process on hold. That case is now in a process of adjournments with no resolution yet found.

http://www.proprint.com.au/News/392752,picton-press-hopeful-ato-action-fails.aspx

Now in the latest twist and marking a change in direction Nipps has has lodged wind up action against Picton and is seeking to have the DOCA terminated with a creditors meeting scheduled for July 22, 2019.

An administrators report will be considered at the meeting with other resolutions to be voted on including winding up the business, liquidator remuneration and approval that once the business is wound up and after ASIC approval all company records can be destroyed.

Nipps was unable to go into the exact details of the situation until after the first creditors meeting but said the delays caused by the ATO legal action had not helped the situation.

“I will discuss the reasons in further detail with creditors at the meeting,” Nipps told ProPrint.

“It wasn’t expected but the process has taken a long time.

“The DOCA was to give the directors a mechanism to allow them to have a financial reset but they weren’t able to really do that properly because of the action that was being taken by the ATO. Having that in the background hasn’t really helped.”

Picton Press director Gary Kennedy was contacted for this story but had not returned calls at time of publication.

http://www.proprint.com.au/News/392892,picton-press-ato-agree-to-further-adjournment.aspx

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