Picton Press debts total $9m

WA printer Picton Press has a total debt of $9m, which includes employee entitlements, alongside secured and unsecured creditors.


Picton went into external administration following the ATO taking court action to wind up the company over a $1.3m debt owed. Australian Printer can now confirm that the total amount owed reaches the $9m mark, far surpassing the additional $700,000-$800,000 originally reported.


The first meeting of creditors was held on June 1. However the ATO has issued a wind up notice for the company through the deputy commissioner of taxation, with a hearing set for today.


The administration is being handled by Jeremy Nipps of Cor Cordis. Nipps says, “The company is seeking to have the wind-up meeting adjourned, and expects for that adjournment to be provided.


“Putting it into liquidation is not going to achieve as good as a result. We want to explore the options, liquidation is going to shorten the process and materially impact on any returns.


“There is a breakdown of different creditors, employees and the like. That includes secured creditors debt, what was previously reported did not include employees, or other classes of creditors.


“It is correct to say that the total amount is $9m, but it is not all unsecured creditors.


“It includes employment entitlements, secured creditors, related party loans which were on the balance sheet.


“The $9m in the main is secured creditors debt. The key for Picton is that yes, there are a combination of creditors owed an account. We are trying to sell the business to maximise the return to each creditor, or alternatively restructure it.


“As the administrator, I am pursuing a couple of alternatives. The options are a sale or restructure, it depends on which maximises the return to the various classes of creditors. We are in early stages yet, seeking expressions of interest for the sale/restructure by the end of this week, June 8.


“So by June 22 we are asking parties to put forward an indicative offer, and then we will seek assistance in providing diligence.


“We are looking at maximising the return to creditors, if employees can maintain their jobs that is a great result.


“The focus should be on what steps are being taken to resolve everything.


“Unless you look in the context of what the business has done, what different debt was provided, and how it was accrued it wouldn’t make sense to comment on it in isolation.


“We have the support of our suppliers, employees are continuing to support us, honouring our employment. Customers are still using Picton, so with that we are continuing and trying to maximise the return to creditors.”


Picton is owned by directors Dennis Hague and Gary Kennedy. General manager Graham Jamieson is also one of the PIAA board directors.

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