SCH puts screws on Preview creditors

Creditors Takeover on hold until questions of debt are resolved.

Specialist Computer Holdings' takeover of Preview Data Systems has been threatened by a joint letter sent to creditors insisting that they accept less than their original debt.

The letter, as obtained by PC Dealer, was signed by Chris Wilde, chairman of Preview, and Neal Roberts, group finance director of SCH. It warned Preview creditors that the takeover would not go ahead unless they accepted an offer of 33 per cent of their outstanding debt.

The letter stated: 'It is a condition of completion (of the takeover) that key trade creditors agree to partial settlement of amounts outstanding to them.'

The letter concluded: 'I would appreciate it if you would sign at the bottom of this letter, your acceptance of these terms by 5.00pm on 15 January, on which SCH's offer to complete depends.'

It warns that creditors have no recourse once they have signed the letter. 'By signing and returning a copy of this letter, you irrevocably waive all rights to the difference between the original debt and the new outstanding debt,' it stated.

Creditors are unhappy with the offer. One creditor, who asked to remain anonymous, said: 'I have no intention of signing such a letter. It came with no backing documents or a statement of affairs. There should be a formal creditors' voluntary agreement rather than just a terse letter.'

Another added: 'The letter is taking advantage of creditors, but not all of them have fallen for it.'

Furthermore, it states the debt will not be settled on receipt of the letter but in three instalments payable at monthly intervals beginning 30 days after the deal completes.

Many of the creditors had only received their letter on 13 January and were asked to sign and return it by 15 January or risk losing all the money that was owed to them.

Neither Wilde nor Roberts was available for comment.