Dick Smith creditors could be in limbo until August

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Dick Smith creditors could be in limbo until August

Dick Smith administrators will apply to delay the second creditors meetings until 2 August, leaving creditors in doubt of the company’s future until then.

During the first creditors meeting last week, administrator Joe Hayes of McGrath Nicol said that due to the size and complexity of Dick Smith, the administrators would not be able to meet the initial scheduled date for the second meeting by February.

“In companies of this nature where complex sales transactions need to be consummated, it’s actually reasonably routine to request lengthy extensions,” said Hayes at the time.

“It’s important that the environment remains stable and an administration is a stable environment for the company whereby we have time to unravel our investigation and equally for the receivers should they achieve a going concern sale have the time to make that transaction take place.”

A similar application will be made for Dick Smith’s New Zealand business, which is also in administration.

Dick Smith was placed in voluntary administration on 5 January owing $390 million in debt. The administrators will continue to look accept offers of an acquisition until 27 January.

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