Leading Edge Computers has fallen into voluntary liquidation owing more than #1.35 million to creditors including Microsoft, Computer 2000, ICL Multivendor Computing and Ideal Hardware.
According to the report filed at last week's meeting and seen by PC Dealer, directors of the reseller blamed inaccurate reporting and a 'black hole' in company records for its downfall.
Leading Edge was placed in voluntary liquidation on 16 February after directors Paul Brenchley and his wife met with key creditors last week and failed to show opportunity for the reseller to trade its way out of debt. Fred Satow of Pannell Kerr Forster and Barry Lewis of Harris Lipman have been appointed as joint liquidators.
The report stated: 'The company was experiencing problems with regard to the financial information being produced and supplied to the directors.
Although final accounts indicated a loss in excess of #116,000 for the period ended 1998, it was the directors' belief that there was greater loss.'
It took Microsoft's decision last month to revoke Leading Edge's Lar status for it to resolve to 'take the necessary steps' to place the reseller into voluntary liquidation, as revealed in PC Dealer, 27 January.
Jonathon Downes, volume licensing programme manager at Microsoft, said Leading Edge's Lar status was 'terminated on the basis of its inability to pay'.
Microsoft is claiming #753,571 from Leading Edge.
Other key creditors included: Computer 2000, which is owed #94,608; ICL Multivendor Computing owed #39,356; and Ideal Hardware owed #25,689.
But Satow said after preferential creditors, the chances of commercial creditors being repaid any of their debts is 'virtually zero'.
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