The Australian Tax Office (ATO) has accepted an adjournment of its proposed wind-up of Picton Press, as it originally sought to force a sale or liquidation to claw back the $1.3m it was owed by the Perth printer.
Debts at Picton Press total $9m between secured, unsecured creditors, with secured creditors making up the bulk of the figure, and worker benefits. The company is seeking a sale or restructure, and is still currently trading.
Jeremy Nipps of Cor Cordis has been handling the company after it was placed in voluntary administration in late May. He says the ATO was willing to accept that the company would be in a better position to pay back its debts if it was allowed to continue trading.
Nipps explains, “ATO adjourned the wind up, which is a positive for the company.
“With respect to the sale, we are now waiting for indicative offers by Friday, based on what we have provided. An information memorandum has been provided to interested parties.
“We will look and consider the offers, and which to run with. It depends on what comes through, and the feedback we get from purchasers along the way.
“We have provided the opportunity for people to purchase individual assets, but ideally we would either sell the business or restructure it.
“We are optimistic around a sale. Picton will definitely continue, and the directors are keen to go through the process. I am confident we will achieve something from the process.
“The business will continue to trade until then, so there will be no change up until Friday.
“The main thing is that the business continues to be supported, which helps in the running of the process.”
As for the fate of the staff, Nipps says, “If staff want to leave on their own accord, that is up to them, but there is no need to conduct any more rationalisation of staff.”
Nipps explains that Picton trimmed its workforce down from 55 to 27 in recent years, following the installation of its latest KBA Rapida press.
“While the website notes 55 employees, when I was appointed there were 27-29. Picton has had the press for a few years now, and the slimming of the workforce was when the KBA was brought in. From what I understand no one was left out of pocket, and entitlements were met.”
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