Entatech creditors are set to recoup some of their lost cash, as the administrators get ready to sell off the collapsed disite’s Telford freehold. The sale of the freehold should be enough to pay creditors between 35-25 pence in the pound to unsecured creditors, according to administrator KPMG.
The firm has already paid two of its three secured creditors in full and should be in a position to pay off the third after the sale goes through. In the report Chris Pole, joint administrator at KPMG, stated that unsecured creditors would be receiving something back from the failed firm.
"We anticipate the unsecured creditors will receive a dividend of between 35-45 pence in the £, however this will be dependent on the timing and realisations achieved for the freehold property and conclusion of all asset realisations and associated costs," the report stated. The report also shared details of the stock being acquired by GNR Technology.
Back in May the Channel was shaken by the news that Entatech had gone out of business. With the company on the ropes for some time, a deal was struck with Beta Distribution for the Telford-based distie to be purchased. The deal looked like it was sure to go ahead, but Beta was scared off after the due dilligence process where it discovered that Entatech's stock was worth less than previously thought. Beta managing director Steve Soper later confirmed to PCR that the firm was spooked during the due diligence procedures and that the deal ‘did not sit well with them’.
Since Entatech shut up shop, its former boss Jason Tsai was for 18 months. Found guilty of breaching a passport order Tsai was also convicted for hiding assets from HMRC during Changtel’s insolvency. In total the High Court found Tsai guilty of 30 of the 53 alleged breaches that he was being tried for. Offences included hiding various bank accounts and properties from HMRC during its investigation, and also breaching orders preventing him leaving the country.