Unsecured creditors set for two thirds return in Entatech insolvency

MD Dave Stevinson set up new firm GNR Technology to increase the amount paid to unsecured creditors

Unsecured creditors of fallen distributor Entatech are set to receive around two thirds of their money back, according to documents published on Companies House.

A report filed by the administrators show that Entatech's unsecured creditors are owed just over £9.7m by the Telford-based firm, with £6.3m available.

Of the £9.7m, just under £7m is owed to unsecured trade creditors, the largest being Microsoft which is owed just over £1.2m.

HMRC is reported as being owed just under £2.5m, while Gigabyte Technology and Fujitsu Services are owed around £822,000 and £668,000 respectively.

Entatech went out of business in May after struggling with legacy financial issues originating under the previous ownership, but its assets were purchased by managing director Dave Stevinson who formed new brand GNR Technology Limited. GNR stands for 'Greatest Net Return'.

Stevinson (pictured) told CRN that the formation of the new brand has made it possible for creditors to get a better return than if the company had ceased trading completely.

"By us getting involved and taking the company forward you can create a much higher return and what we've tried to do is maximise realisation for creditors," he said.

"We've protected 29 jobs and by the company continuing, people are much more inclined to pay for what they've purchased."

Stevinson said the return for creditors is still in the early stages and that ideally GNR would like to see the 65-pence-in-the-pound rate improve.

He said that GNR will cut the number of vendors it carries from over 70 to around 25 to have a narrower and specialist focus.

So far GNR has secured deals with Gigabyte, Adata, Hannspree, iStorage and Intel.