Compromise sought over PC Company debts

By RICHARD WOOD

A notice has been filed to wind up The PC Company, but the firm is still hoping it can reach an agreement with creditors in time to stop receivers being appointed.

Managing director Colin Brown last month took over the debenture on the failing company and chose not to enter receivership.

He confirmed yesterday that a wind-up notice had been filed but said such a petition took time to go through the courts.

John Weir of Tompkins Wake Lawyers is representing the firm and said the process of ascertaining company assets and liabilities should be complete by the end of the week, at which point a "compromise with creditors" or scheme of arrangement proposal could be put to creditors.

Jeff Meltzer, of Auckland insolvency firm Meltzer Mason Heath, said once a compromise proposal had been mailed it would be possible for The PC Company to obtain a stay of liquidation proceedings until after the meeting of creditors had been held, or after the proposal had been considered by creditors.

Weir said the extent of The PC Company's shortfall was unclear, but it was clear there was a shortfall. Brown later said it was premature to say there was a shortfall.

A month after the PC Company closed its doors, the firm's disaffected customers continue to contact the Herald, citing difficulties in getting responses from the firm.

"There are hundreds of issues with very limited resources to deal to them - it's not a five-minute exercise," said Weir.

He said that in situations where PCs were in for servicing and had not been returned, if they could not be located those customers would probably become creditors of the company, although they should consult their own lawyers.

Brown said he had a "few people" tracking down PCs and money owed, and all the missing computers identified to date had been found.

Russ Olsen, ex-manager of The PC Company franchise in Hawkes Bay, said he still had three monitors in at The PC Company in Hamilton and had not heard from Brown at all since the doors closed.

He also said he received half a dozen calls from Wellington, Christchurch and Gisborne customers last week trying to contact The PC Company but unable to raise a response.

But he said support for warranty repairs through the Computer Manufacturers Association was working well and his new firm, PC Country, was also honouring warranty issues in the Bay.

Association chairman Peter Shirley said support calls had started to taper off and a lot of problems had been software-related, which the association did not cover.

Ingram Micro, which supplied hard drives to the PC Company and is a major creditor, has set up streamlined procedures to handle warranty claims, which it expects to arrive at 10 a week for the next year.

Director John Dunbar said the firm was moving as fast as it could but it could not resolve customer issues "on the spot" as replacements had to be sourced.

* Contacts: Tompkins Wake Lawyers (07) 839-4771; Computer Manufacturers Association of NZ, (0800) 426-269