Collapsed Melbourne printer Print Dynamics has offered unsecured creditors owed a total of $1.3 million a take-it-or-leave-it, 10 cents-in-the-dollar settlement deal. The offer is conditional on all of those creditors agreeing to the terms.
The company says it also owes employee entitlements totalling $581,067.17.
The Mount Waverley commercial print business closed its doors, removed its website and ceased trading last month, 17 years after being founded by co-owners Mark Shapiro and Anthony Saben.
“We’re in the process of selling all of our equipment but we haven’t closed any deals yet,” Shapiro said at the time. “We’re talking to many different people but nothing’s yet been signed with anyone.” Last week, Shapiro said there had been no progress with the equipment sale but the company was continuing to negotiate with a couple of people.
On Wednesday, Print Dynamics sent a letter signed by Shapiro and Saben to update unsecured creditors.
The letter claims that all that remains by way of assets are the debtors. It predicts any proceeds will be used to pay employee entitlements, which have been 'crystallised' by the failure of the business. Employee benefits are regarded as a priority creditor, ahead of trade suppliers. Unsecured creditors owed $1.3 million could end up with nothing unless they agree to a scheme of arrangement. In the letter, the directors state:
After payout of the employees and the secured creditors there will not be any funds available to pay the unsecured creditors.
We have had discussions with related parties to provide funding to enable creditors to sell their claims for 10 cents in the dollar. Any offer will be conditional on the following
• All creditors must agree
• Your claim and any rights and security must be assigned to the funder
• No separate negotiation as to the 10 cents in the dollar will be undertaken. All unsecured creditors will be treated exactly the same.
The benefits of the offer are
• To provide a return to you as opposed to nil in a winding up
• Payment to you soon, subject to all creditors agreeing.
If you are in agreement with this proposal please send written confirmation to us. When all creditors respond, we will then proceed with the relevant documentation and payment. If any creditor is not prepared to accept this offer, we request you notify us so that we do not waste the time of the other creditors in dealing with a proposal that will not proceed.
The directors added: It is with regret that the affairs of the Company have ended up as they have.
Established in 2000, Print Dynamics developed into a thriving commercial print house that employed 25 staff with annual revenue once estimated at $9.5 million, according to an online business directory.
The company offered offset and digital printing services from prepress to finishing, as well as mailing and graphic design. Its major clients were print management companies.