Revealed: United Warranties’ giant debt pool

By Allie Coyne on Jul 19, 2012 12:55 PM
Filed under Hardware

Massive list of unlucky creditors.

A clearer picture is now emerging of the mountains of debt generated by collapsed warranty provider United Warranties.

After last week revealing to CRN the failed company had no money to pay back its customers or partners, liquidator Grant Thornton has found a list of over 500 unsecured claimants owed a combined $1.7 million for United Warranties alone, as well as a separate $5.7 million bill from the National Australia Bank.

The liquidator is still making its way through a list of over 100 combined claims for the group’s other two arms, United Maintenance and United Electrical Holding.

The monetary claims for those companies will be made public in the coming weeks.

Claims to United Warranties have poured in from unsecured creditors including the likes of Telstra, Qantas, Corporate Express, Myer, as well the Australian arms of international corporations including Synnex, Samsung, Ingram Micro, IBM and LG - not to mention a legion of smaller retailers.

Reimbursement claims range from as little as $47 to $212,000 from the Australia Tax Office.

But those parties are unlikely to ever see their money.

NAB, the only secured creditor, is expected to see its $5.7 million loan repaid in full.

United Warranties is estimated to have around $16.2 million in assets, with only around $1.4m likely to be realised. The bill for the group’s combined 120 employees is still under investigation. 

The company, its creditors and liquidators are meeting today to discuss a voluntary winding up of the group. 

Speculation first arose the company was in financial difficulty in early June when partners and customers were unable to contact the warranty provider.

The group officially went into liquidation last week after weeks of being missing in action. 

United Warranties commenced local trading in 1996 and later established a presence in New Zealand.

 
Follow us on Facebook and Twitter
 

Copyright © CRN Australia. All rights reserved.

Revealed: United Warranties’ giant debt pool
 
 
 
 
 
Top Stories
The 20 most influential people in tech of 2014
Who's turning the industry upside down?
 
Officeworks cracks earnings milestone
But expects unpredictable conditions ahead.
 
Strong Vita Group earnings marred by Apple business
Lack of new iPhone hurts Next Byte.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
As a reseller, rebates and discounts are...


Latest Comments
CRN Magazine

Issue: 329 | July 2014

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.