Administrators for the failed media company Derwent Howard, who produced such titles as The Offical Playstation Magazine, have said that the preliminary estimate for outstanding liabilities is $5.2 million. However they have not explained the removal of assets from one media company to another.
Two months ago, Derwent Howard syndicated to advertisiers a rate card and sales kit for a new Derwent Howard publication being produced for Dick Smith by Derwent Howards custom publishing division.
Now it appears that the publication which was an asset of Derwent Howards prior to the administrators being called in is being produced by a new media company linked with former Derwent Howard executive Nick Cuttler.
Administrators from solvency and forensic accountants Worrells today chaired a first meeting of creditors for the former technology publisher.
The meeting chaired by Derwent Howard Media voluntary administrator Nick Malanos, a partner with Worrells. About 20 creditors attended.
Mr Malanos told creditors he and colleague Chris Darin were continuing to investigate the company’s affairs to determine its full liabilities, and identify any assets that might be available to the administrators. However, it was probable Derwent Howard Media has few assets.
He has not said if he is investigating whether mastheads have been removed to new media companies prior to his company being called in.
He did say that he was currently discussing the prospect of a Deed of Company Arrangement with the Director of Derwent Howard Media, Mr Jim Flynn, but no decision had been made.
In other developments:
· The preliminary estimate for outstanding liabilities is $5.2 million
· To date, about 40 unsecured creditors have been identified
· It is not yet known whether employees have any outstanding entitlements
· The meeting appointed a committee of creditors to liaise with the
administrators on potential returns if any assets can be realised
· A preliminary report to creditors will be issued before the end of November
A second meeting of creditors will be held in December after the issuing of the preliminary creditors’ report.