Print National caught in $23m insolvency

Print National and an interrelated group of companies have collapsed in a complicated insolvency that could top $23 million of debt.

The 35-staff regional printer, which is based in the Central Coast region of New South Wales, collapsed in August. Print National also has sites in Sydney and Newcastle. Print National's director, David James, also runs a wine business, which is divided among several other companies that also collapsed last month.

McGrath Nicol was appointed administrator and then liquidator of the companies associated with the wine business. According to McGrath Nicol's report from the first creditors meeting on 29 August, creditors had lodged claims for more than $23.6 million.

That included a $14.1 million claim by secured creditor ANZ, a $5.8 million claim by the NSW Office of State Revenue and a $2.1 million claim by Bankwest.

Rabo Bank is the secured creditor of the Central Coast printing business, with Deloitte appointed receiver on 28 August.

[Feature: Avoiding the bad debt domino effect]

The financial position of the printing business is unclear. Deloitte said in a statement: "All group trading entities will continue to trade as normal while the business, subject to assessment of the group’s financial position, is prepared for sale."

Deloitte restructuring partner Neil Cussen added: "Since our appointment both the printing and winery operations have continued to operate as normal as we assess the businesses for potential sale.

"We understand this is unsettling time for creditors and employees and we have made it a priority to keep them fully informed of developments. All employees will continue to be paid in accordance with their employment conditions.

"We are actively seeking a buyer for the print business… There has already been some enquiries from interested parties so we are optimistic about a positive outcome.

"We continue to work with the staff and suppliers to maintain operations at both businesses. It has been a really difficult period for the employees and we’d like to thank them for their professionalism in keeping both businesses operational while we seek out buyers."

[LinkedIn: Should the industry stop operating on credit?]

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