Watford facing creditors gap
Reseller's debts revealed to have reached £9.2m
A meeting of creditors has been set for 16 April for defunct integrator Watford Electronics, which for legal reasons has now changed its name to Digital POS Ltd.
Administrator Smith and Williamson has issued a report which states that the VAR owes £9.2m in total, with £5m owed to trade creditors, such as distributors.
Stephen Fenby, financial director at distributor Midwich, which is a creditor of Digital POS, told CRN that he still has lots of unanswered questions and will certainly be attending the meeting.
“To be in debt £5m to the distributors with what looks like not many assets is a large deficit,” he said. “It sounds like the group structure is quite complicated so I will also want to understand more about this. My expectation is that we will get very little back.”
Nitin Joshi, founder of Channelmoney and representative of several creditors, said: “There are some core issues on which we would like further clarification.
“We intend to work with the Administrator. In the meantime, all endeavours should be made to maximise asset realisations. It’s too early to say whether a dividend will be paid to creditors.”