Performance Direct sticks to CVA terms to clear debt

Egham-based Performance Direct's future has been secured after the reseller finalised a creditors' voluntary agreement (CVA), after incurring debts of just over #1 million with its trade suppliers.

At a meeting held on 25 November, Simmtech, which trades as Performance Direct, agreed terms with most of its major suppliers. Some of its suppliers include Ingram Micro, Computers Unlimited, Frontline and Ideal Hardware.

As part of the CVA, Performance Direct has agreed to pay 41p in the #1 over the next three years to clear existing creditor debt.

John Alexander, partner of corporate recovery at Pannell Kerr Forster, was appointed joint supervisor. Commenting on the CVA, he said: 'I am glad we agreed terms for Performance Direct. There is still a lot of potential with this reseller.'

Performance Direct will continue to trade after receiving verbal undertakings from its major suppliers - which are owed a total of #1.3 million - that they will continue to support the company.

Performance Direct was understood to have suffered financial problems brought about by the downturn in the Mac market as a result of Apple's own problems, as well as the drop in memory prices.

While the majority of creditors agreed to the terms of the CVA, the Inland Revenue and Ideal Hardware were understood to have voted against the proposal, although it was not clear why.

If Performance Direct had not concluded terms with its suppliers, the company would have been plunged into financial uncertainty.

Bruce Cattell, managing director of Performance Direct, refused to comment.