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By | Paul Kunert 11th April 2013 15:32

Administrator: 2e2 owed £412m to creditors when it went titsup

Well-known channel firms owed MEELLIONS

2e2 Ltd crashed out of business owing creditors a little over £412m, the firm's administrator FTI Consulting has confirmed in its statement of affairs.

The document, seen by The Channel, revealed debts secured by floating charges of £161.5m pertaining to the integrator's banking syndicate, and unsecured non-preferential claims of £250.8m.

But it appears that FTI Consulting has realised assets of around £32m for secured lenders - hardly the return its bankers or VCs Duke Street and Hutton Collins would have originally forecast when investing in 2e2.

FTI has already confirmed the "significant shortfall to secured creditors" and that based on information at hand there will be "no funds" for unsecured creditors.

The list of trade creditors is long, very long indeed and includes vendors, distributors, resellers and a host of firms from other industries including a florist, a baker and recruiters.

Trade creditors were owed £51.6m according to FTI Consulting's statement of affairs and it listed distributor Arrow ECS as the biggest debt of the bunch at £12.78m.

Other distie creditors include Computer 2000 (£5.56m), Avnet (£2m), Ingram Micro (£645k), E92 Plus (£499k), Exclusive Networks (£460k), Comstor (£413k), Westcon (£410,607), CMS Distribution (£163k) and Westcoast (£37k).

But in the run-up to its administration 2e2 ran out of credit in distribution and started approaching resellers to source products.

As such it left a string of creditors in this sector too. These included IPITOMI (£2.7m), Misco (£2m), Advanced Business Solutions (£697k), RM (£320k), Insight (£147k), Maindec Computer Solutions (£97k), Danwood (£93k) and Softcat (£73k)

Vendors included many of the big hitters such as Cisco (£5.8m), HP (£1.2m), EMC (£567k), Dell (£383k), Oracle (£307k), Virgin Media (£212k) and Telefonica (£163k).

Trade creditors are unsecured creditors and as such, FTI said that based on current information "there will be no funds available to distribute". ®

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