Mavridis: S Central staff, creditors to be paid from $7m account

• Will employees be paid their entitlements?

Peter Mavridis: All staff will get their entitlements. The only ones concerned about this are the ones that haven't been offered new roles with Brennan IT - about ten or so, I believe.

Staff have been offered roles as of tomorrow. From tomorrow, all staff will be paid from Brennan. Brennan IT have also offered to make up for any gaps in terms of things like commissions.

• Does this include back pay, leave and superannuation owed to staff?

 Peter Mavridis: No, that will all be paid out by the old S Central entity.

• How will the old S Central entity afford to pay them? What assets does the business have left?

Peter Mavridis: The concerns staff are looking at is liabilities. But you have to remember the business has a huge amount of debtors - customers that owe money to the business.

• How much is owed to the business?

Peter Mavridis: Around $6 million to $7 million. The cash inside the company is not going across to Brennan IT. The debts owed to S Central, once paid, go to pay creditors and staff.

• Was it a cash-flow problem that forced you to look for a trade sale?

Peter Mavridis: No, not at all. I had been talking to Dave for two to three years.

• What else is the old S Central left with? Plant or equipment?

Peter Mavridis: What you call the 'shell' of the company - what is left, is debtors used to pay off outstanding creditors and staff. All plant and equipment, branding, customer agreements transfer to Brennan.

• How much is owed to creditors? Does it exceed what you expect to take in from customer receipts?

 Peter Mavridis: No. It is no more than $3 million or $4 million. There will be a capital surplus.

• Have any trade creditors threatened legal action to recover funds?

Peter Mavridis: No, none at all.

• What will you do with the shell of S Central? It is little more than a bank account?

 Peter Mavridis: It just gets wound down as the money gets paid.

• Will you be applying for insolvency or administrators?

Peter Mavridis: No, there is no need to do that.

• I have a feeling creditors and staff would be more comfortable if they knew you were not cashing out on this transaction with Brennan. Exactly what did you sell the company for?

Peter Mavridis: I can't disclose that. But I can say the proceeds from the sale go to S Central to pay creditors and staff. It doesn't go to me.

• What will you do now?

Peter Mavridis: Well, according to your article, somewhere other than Brennan IT. Where did you get that information?

• Brennan IT representatives told me that explicitly in an email.

Peter Mavridis: I just had an email from Dave (Stevens). He says the quotes didn't come from us. I am definitely going across to do a transition.

• That's in your contract?

Peter Mavridis: Yes, a minimum of three months. I'll be going across, then taking some Christmas holidays, then go back to do more of the transition.

• And then what? You have some other work in the Finance sector, yes?

Peter Mavridis: I am on the board of a bank [Laiki Bank] owned by the Royal Family of Dubai. My background is finance. I have always been in the finance world. But I have a few other investments in IT - I will continue with that too.

The important thing for me is that staff have been taken care of - with either jobs at Brennan or outplacement through Chandler Recruitment Services.

• Do staff have a choice of whether to go across to Brennan IT?

Peter Mavridis: We have advised them not to do anything until today. Today they sign contracts and move across tomorrow. I have a feeling that 85 to 90 percent of staff will accept.

•  How are customers feeling about this?

Peter Mavridis: The customers are fine. Their view is as long as they are dealing with largely the same people, it's a good outcome for everyone.