Maclean Computing owes $3m
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Liquidators report lists many ICT industry big players as creditors
By Sim Ahmed | Auckland | Friday, 20 July, 2012 | 44 Comments
Following the demise of Maclean Computing a liquidator’s report released last night shows the Auckland-based IT company owed creditors more than $3 milion.
According to an “Estimated State of Affairs” prepared by Waterstone Insolvency, Maclean’s liabilities include $1,072,000 owed to preferential creditors, $1,050,000 to secured creditors and $930,000 to unsecured creditors.
Waterstone says Maclean’s known creditors include big players such as Gen-i, ANZ and IBM as well as smaller organisations such as Alzheimer Auckland.
At the time of liquidation, Maclean’s total assets were estimated to be worth $1,130,000.
Waterstone says an official audit has not been conducted into the accuracy of Maclean’s accounts.
In liquidation cases the Inland Revenue, secured creditors and employees are the first to be paid out.
Computerworld sought comment from the liquidator whether Maclean Computing CEO Chris Maclean is among the secured creditors.
Waterstone general manager Steven Khov replied that "Chris in his personal capacity would be an unsecured creditor."
Maclean Computing was put into liquidation on July 13. Chris Maclean, son of founder Allan Maclean, claims the liquidation occured as a result of a theft from the company by a former financial controller.
The liquidators simply state that Maclean was “unable to pay its debts as they fell due,” which is the legal definition of insolvency.
On July 18 Chris Maclean announced that he and a business partner had purchased the assets of Maclean Computing from Waterstone. The new company is named Maclean Technology Ltd.
Waterstone liquidator Damien Grant said a competitive sales process for the assets took place over five days, but wouldn’t say how many bids were in the running, or what was paid for the assets.
When asked if the sale was in keeping with the ‘Phoenix Law’, or sections 386A-F of the Companies Act (which govern whether the assets of a company in liquidation can be bought by affiliated parties), Grant replied: “I hope it would be, otherwise I’m going to prison.”
He says the process was hastened by publicity that the liquidation received on the Computerworld website, including an article about competitor Code Blue making a play for Maclean Computing's customers.
Some of the prominent Maclean creditors:
- ACC
- Alzheimers Auckland
- ANZ National Bank
- BDO Spicer
- Citrix Asia Pacific
- Datastor
- Gen-i
- Hayes Knight
- HP
- IBM
- Ice House
- Ingram Micro
- IRD
- Mako Networks
- Mercury Energy
- PB Tech
- Plan-b
- Renaissance
- Southern Cross Healthcare
- Telecom / Telecom Rentals
- TelstraClear
- Vector
- World Exchange
- Young & Shand
Comments
The facts
The advice given to construct the Phoenix company in this way is insane. they should have sold the company assets to the new company name at market value and goodwill value then liquidate the old one.
However with full intention to pay creditors a percentage of original debt from within the phoenix company as well as with the real market value of the sale and promise to pay from future MTL business.
It's not an ideal situation however I am sure at this stage creditors would rather have been given the option to get some money instead of nothing.
Directors carrying on illegitimate phoenix arrangements also run the risk of breaching s 380 law. This section provides that if a director knowingly carries on business with intent to defraud creditors they are liable to the penalties set out in s 373(4).
The director knowingly according to the companies office website on the 6th of July transferred his shares from his name to the two new directors of the Phoenix company and his directorship ceased.
The liquidated company went into liquidation two weeks after this event.
The liquidators don't have to call a creditors meeting, however due to the nature of the sale should have certainly considered this option seriously. I would have.
1. Was market value paid for by the bidder, therefore reducing the impact to the creditors ?
2. Has the liquidator fully investigated the conduct of the shareholders and directors ?
3. Liquidation on a Friday night and the new Phoenix rises from the ashes by Tuesday
$500 000 fraud by previous employee, is PROFIT stolen which could have been used to generate siginificantly more and could have possibly been the downfall here.
Was this over a period of time and if so then relaxed company policies allowed it to happen.
My thoughts are with the creditors and with the shareholders and directors. It's not a nice position to be in, regardless what side of the fence anyone is on here.
Posted by Rosco at 1:46:13 on July 21, 2012
However with full intention to pay creditors a percentage of original debt from within the phoenix company as well as with the real market value of the sale and promise to pay from future MTL business.
It's not an ideal situation however I am sure at this stage creditors would rather have been given the option to get some money instead of nothing.
Directors carrying on illegitimate phoenix arrangements also run the risk of breaching s 380 law. This section provides that if a director knowingly carries on business with intent to defraud creditors they are liable to the penalties set out in s 373(4).
The director knowingly according to the companies office website on the 6th of July transferred his shares from his name to the two new directors of the Phoenix company and his directorship ceased.
The liquidated company went into liquidation two weeks after this event.
The liquidators don't have to call a creditors meeting, however due to the nature of the sale should have certainly considered this option seriously. I would have.
1. Was market value paid for by the bidder, therefore reducing the impact to the creditors ?
2. Has the liquidator fully investigated the conduct of the shareholders and directors ?
3. Liquidation on a Friday night and the new Phoenix rises from the ashes by Tuesday
$500 000 fraud by previous employee, is PROFIT stolen which could have been used to generate siginificantly more and could have possibly been the downfall here.
Was this over a period of time and if so then relaxed company policies allowed it to happen.
My thoughts are with the creditors and with the shareholders and directors. It's not a nice position to be in, regardless what side of the fence anyone is on here.
Posted by Rosco at 1:46:13 on July 21, 2012
Who was/is in charge?
Have any other senior players joined Matt and Chris in their new adventure? Where were they in all this or did Chris rule alone. Surely others could see what was coming as this sort of thing doesn't happen overnight
Posted by Anonymous at 0:49:34 on July 21, 2012
Posted by Anonymous at 0:49:34 on July 21, 2012
Fact as per your request S Rowe
For those wanting to look at other peoples dirty laundry, I've listed what those of us who experienced MCL first hand have been commenting about for years. This is not a rant, it's more of a post-mortem.
Fact 1 - Year 1 when Chris arrived resulted in around 50% turnover of staff. Recruitment numbers were excessive every year since costing hundreds of thousands of dollars more over Chris's tenureship.
Fact 2 - Decisions like the North Shore office costs tens of thousands of dollars and was Chris's idea
Fact 3 - The building, need I say more?
Fact 4 - Pesky staff disputes over unfair dismissals distracted MCL execs for long periods
Fact 5 - ATL and Wellington, not good decisions
Fact 6 - Buying BITS!!!!
Fact 7 - Making loyal (years of service prior to his arrival), profitable, popular staff redundant for, well, nobody could work it out at the time.
Fact 8 - Yes, they were ripped off and it wasn't nice and GJ (I hope you are reading this) you should be ashamed of yourself every time you look in a mirror!!
Fact 9 - Under PK's financial guidance the company grew from around 10 to around 50 employees and was very successful, a trend that existed for around 8 years I believe (his stay at MCL)
Fact 10 - Yes, the IT industry changed, so maybe Chris just got it wrong or more frustrating just couldn't get it quite right.
Fact 11 - A whole bunch of people with flash titles and salaries to match where appointed, ever increasing the overheads.
The above goes a long way to explain some of the numbers
As you can tell, I've given this some thought and it all comes down to accountability, which in turn can be legal or moral. Chris may have addressed his legal accountability, let's see if his customers feel he has addressed his moral accountability.
Posted by Deaf Ears at 22:53:29 on July 20, 2012
Fact 1 - Year 1 when Chris arrived resulted in around 50% turnover of staff. Recruitment numbers were excessive every year since costing hundreds of thousands of dollars more over Chris's tenureship.
Fact 2 - Decisions like the North Shore office costs tens of thousands of dollars and was Chris's idea
Fact 3 - The building, need I say more?
Fact 4 - Pesky staff disputes over unfair dismissals distracted MCL execs for long periods
Fact 5 - ATL and Wellington, not good decisions
Fact 6 - Buying BITS!!!!
Fact 7 - Making loyal (years of service prior to his arrival), profitable, popular staff redundant for, well, nobody could work it out at the time.
Fact 8 - Yes, they were ripped off and it wasn't nice and GJ (I hope you are reading this) you should be ashamed of yourself every time you look in a mirror!!
Fact 9 - Under PK's financial guidance the company grew from around 10 to around 50 employees and was very successful, a trend that existed for around 8 years I believe (his stay at MCL)
Fact 10 - Yes, the IT industry changed, so maybe Chris just got it wrong or more frustrating just couldn't get it quite right.
Fact 11 - A whole bunch of people with flash titles and salaries to match where appointed, ever increasing the overheads.
The above goes a long way to explain some of the numbers
As you can tell, I've given this some thought and it all comes down to accountability, which in turn can be legal or moral. Chris may have addressed his legal accountability, let's see if his customers feel he has addressed his moral accountability.
Posted by Deaf Ears at 22:53:29 on July 20, 2012
Fact as per your request S Rowe
I left the company two years ago and every statement made here is 100% accurate.
Posted by Spot on at 0:28:20 on July 21, 2012
Posted by Spot on at 0:28:20 on July 21, 2012
Man or Mouse?
Chris, time to enter the fray and stop all the debate. All you need to do is commit to using all the earnings from the pheonix to repay the debts of the old company, before you take a cent for yourself. That will prove to everybody that this wasn't just a selfish cynical action, and that you have some morals and ethics.
Posted by Anonymous at 19:30:05 on July 20, 2012
Posted by Anonymous at 19:30:05 on July 20, 2012
Ignorance is alive and well...
I am in no doubt as to the personal struggle that the families involved have gone through in recent times and it's oh so easy to sit behind a computer keyboard and tap away ignorantly believing you know the facts which happen to be spoonfed to you by a bias and faceless media...it's great if you want to be just another ignoramus, but perhaps just for once, it would be refreshing to stop being part of the witch hunt and read between the lines - with a complete lack of understanding or knowledge, such ill informed comments and viewpoints are best kept to yourself. I bet most of these 'sheep' spewing out hate are in fact competitors of Macleans...you have to wonder!
Posted by S Rowe at 18:33:46 on July 20, 2012
Posted by S Rowe at 18:33:46 on July 20, 2012
The Bitchy World of IT - Scary!!!
Who knew that IT was such a bitchy world? Nastiness off the scale here guys! And I bet you don't know or care about what really happened. It reminds me of school bullies lining up to stick the boot in! It would seem that this guy is a threat to some of you...just wondering..
Posted by Anonymous at 18:07:55 on July 20, 2012
Posted by Anonymous at 18:07:55 on July 20, 2012
The Bitchy World of IT - Scary!!!
Perhaps people want answers and turning to forums like this to collectively come to some form of conclusion. As long as people stick to the facts it makes interesting reading. I for one am fascinated by it all. Certainly a lot of upset people here.
Posted by Social Commentator at 18:18:37 on July 20, 2012
Posted by Social Commentator at 18:18:37 on July 20, 2012
The Bitchy World of IT - Scary!!!
Sorry, but wouldn't you perhaps be a bit bitchy too if someone had found a way of not paying what they owed you with no negative impact to them self?
Posted by The threat is not being paid at 18:16:07 on July 20, 2012
Posted by The threat is not being paid at 18:16:07 on July 20, 2012
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