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By | Kelly Fiveash 12th October 2007 11:33

Evesham left debts of £6.8m

No surplus funds for unsecured creditors

Defunct British PC maker Evesham Technology went bust owing creditors nearly £7m, the firm's administrators have revealed.

However, unsecured creditors can forget any chance of a payout because there are no "surplus funds" available.

In a creditors report covering Evesham Technology, Evesham Technology Holdings and Mertec Evesham Technology, dated 27 September 2007, administrators DTE Leonard Curtis said there was no money in the pot for unsecured creditors.

Evesham notched up a massive outstanding creditors' debt of close to £6.8m, according to DTE. This followed the collapse of the computer maker, which fell into administration in August with the majority of the firm's staff being laid-off without notice.

DTE said it has so far received claims from creditors in excess of £3.6m.

Creditors had been given a deadline of noon today to file their claims to the administrators. DTE said an initial creditors meeting will take place if at least 10 per cent of creditors required it.

The firm still owes money to a long list of vendors and disties that include the likes of Microsoft, AMD, Avnet, Ingram Micro, Western Digital, and Computer 2000 (C2000).

Unsurprisingly, many Evesham channel partners were unwilling to comment on their financial relationship with the defunct firm.

But huge figures remain outstanding to some big hitters including more than £800,000 owed to Microsoft Licensing and about £340,000 due to AMD.

The chip maker confirmed in August that it had backed out of its direct relationship with the indigenous British computer manufacturer following the firm's collapse.

According to the report, Ingram Micro is owed about £48,000 from Evesham, while C2000 is owed £86,000.

DTE joint administrator J M Titley said in the statement that the most likely fate of Evesham was a Creditors' Voluntary Liquidation (CVL).

The statement also bangs the same drum as ex-chairman Richard Austin, who blamed Evesham's demise on the government's sudden withdrawal of the Home Computing Initiative (HCI) scheme.

It said: "The unexpected end to the HCI scheme put tremendous pressure on [Evesham] Technology's resources and despite diversifying into new markets and establishing many new areas of business it was impossible to fill the enormous gap in turnover [£30m for 2007] left by the demise of HCI.

"Losses accrued to such an extent culminating in the withdrawal of suppliers credit insurance such that the company sought professional help from insolvency and recovery specialists."

However, as we reported previously, Austin had proclaimed in 2006 that Evesham was far too robust to be directly hit by the HCI scheme being scrapped.

The statement also noted that at the time of Evesham going bust Austin had an overdrawn directors' loan account of £650,000.

DTE said it had accepted a £150,000 settlement with the co-founder, who had been at the firm for nearly a quarter of a century, but added that if Austin "has additional assets, further recoveries can be made".

The report also showed that as of May 2007, Evesham's cash at the bank and in hand stood at £209,000, compared to £203,000 the previous year, and £2.4m in 2005.

Meanwhile, the Evesham brand, under Austin's directorship has continued to trade, propped up by TimeUK founder Tahir Mohsan's Dubai-based outfit PCC Technology. ®

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