High-end visual computing specialist Silicon Graphics has filed an application for the liquidation of Sealcorp Computer Products (SCP) Reseller News has learned.
Sealcorp is a subsidiary of the Brocker Technology Group. Brocker’s Simon Jones, Commercial Ventures division general manager, says when the company proposed an “informal scheme” to around eight or nine multinational suppliers, two of them – one of which was SGI – rejected the proposal. It is these rejections that will probably lead to the final demise of the beleaguered SCP. “Two elected not to accept the scheme and they’re now moving to place the company in liquidation,” says Jones.
“From our perspective we’re comfortable with their decision – we will probably move to place it in receivership ourselves … Basically, that’s the end of that business from our perspective. The control will pass to a receiver or a liquidator and they will sell the assets and make distribution to creditors – including SGI.
“We’re going into liquidation – at the end of the day it makes no difference to the parent company as to whether it goes into liquidation, receivership or a scheme. We’re saying these are the assets – you’re invited to realise them,” adds Jones.
On February 23, Brocker announced it was exiting the computer distribution business in New Zealand and Australia. However, it has kept the Autodesk agency. Brocker's decision came after a $C4.5 million dollar irregularity was uncovered within its Australian subsidiary.
“Brocker has lost a significant amount of cash as a consequence of Australia’s actions earlier this year and we’re not prepared to continue to lose cash. We’ve reported before that one of our primary reasons for closing the business was simply the margin was unsuccessful. We’ve basically been operating at a loss and we’re not prepared to do that any longer,” says Jones.
“As soon as the solvency issue is sorted out, we’re out of this business and will focus on our business that is profitable.”
Jones stressed, however, that the rest of the company is performing well and he is “bullish” about its future prospects.
Meanwhile, a press report earlier this month stated that software company Novell, one of the creditors spoken to, is getting impatient about the six-figure sum it says it is owed following the cessation of its distribution agreement with Sealcorp in February. Novell New Zealand head Peter Revell said talks have been taking place with Brocker, but progress was slow and court action to speed things up was not out of the question.
Compaq is another creditor.
The application is to be heard before the Auckland High Court on July 26 at 10am. SGI could not immediately be contacted.