PMP and Geon face $1.7m exposure in collapse of Borders, Angus & Robertson

ProPrint has seen a copy of the minutes from Red Group’s creditors meeting on 1 March. It reported that both Borders and Angus & Robertson owe money to Geon as well as PMP subsidiaries Scribo and Gordon & Gotch.

The PMP companies are owed a joint total of $712,349 while Geon’s account runs just over $1m.

PMP chief executive Richard Allely told ProPrint that while he was “still hopeful we will collect that debt”, he had taken a “very conservative view in terms of the exposure”.

He said that he had included some “wriggle room” in his most recent market forecast to account for the potential write-off.

Allely pointed out that the exposure was a calculated risk, as all the liabilities were within the 30-day trading period and that Red Group had always previously paid its bills on time.

“We run an 30-day account. With distribution, particularly books and magazines, if we don’t get paid on the due date, we don’t supply.

“The reality is that if you are contracting to do work at the prices the market has enjoyed for some time, you can’t afford to be the bank,” added Allely.

It is unclear whether Geon’s $1m of liabilities fit the same bill. The trans-Tasman sheetfed giant declined to comment when contacted by ProPrint.

It could be a long wait before the unsecured creditors find out what will happen with their debts; according to a news report on the New Zealand Stock Exchange, administrator Ferrier Hodgson had secured an extension until 17 September before deciding on the best course of action.

Steven Sherman, the administrator at Ferrier Hodgson, did not respond to ProPrint by time of publication.

According to the minutes of 1 March meeting: “It is not unusual for applications to extend the convening period for the second meeting to be made to the court for administrations of this size.”

Red Group called in the administrators on 17 February.

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