ProPrint understands that suppliers are owed millions of dollars and that many are concerned Geon could emerge from receivership without fully repaying creditors.
The group's receivers are thought to be desperately trying to turn the taps back on.
Shaun Fraser, a partner with the receivers, McGrath Nicol, told ProPrint: “We are having productive discussions with the major suppliers and their stakeholders with an aim to recommence supply during the receivership.”
Geon's paper is supplied by the three major merchants, with BJ Ball thought to be the largest supplier and the balance provided by KW Doggett and Paperlinx.
BJ Ball chief executive Craig Brown told ProPrint: “We are surprised and disappointed [by the receivership] given the earlier announcements and dialogue with Geon.
"Currently we have elected not to supply Geon under receivership and our position is clear, as always we will only supply on the basis that all amounts owing are paid in full. This is difficult time for the Geon staff who I believe are as surprised as we are.”
KW Doggett managing director Simon Doggett told ProPrint: "As it stands, supply is cut. We've requested access to all sites to remove our inventory. We're disappointed and are currently seeking payment of our full debt. Further conversations are ongoing between all stakeholders."
Paperlinx also confirmed it was no longer supplying Geon.
Andy Preece, executive general manager of Spicers, part of Paperlinx, told ProPrint: “This came out of the blue for us and at this point in time we are trying to understand the nature of the transaction.”
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Geon runs Heidelberg presses, while its Kodak plates and plate processors are also supplied via a deal with Heidelberg.
Richard Timson, managing director of Heidelberg Australia & New Zealand, said he was shocked to hear of Geon's collapse.
“Everyone at Heidelberg feels very upset for all the Geon employees who are facing a lot of uncertainty.”
Timson added that Heidelberg was assessing whether equipment could be pulled out of the print group.
Karen Goldsmith, executive director of the suppliers’ association, GAMAA, said: “Any situation where creditors are at risk of non-payment, especially in such large amounts, can have significant flow-on effect to the industry as a whole.
“We hope the right thing will be done by suppliers and employees in this unfortunate situation, however, GAMAA will not make comment on speculative scenarios.”
Meanwhile, Stephen Anstice, chief executive of Australia’s second biggest print group, IPMG, has also leant his voice to the debate.
"Many suppliers will be facing bankruptcy as the impact of this receivership is felt throughout the industry and its knock-on effects could lead to serious consequences for many other suppliers, staff and customers," he said.
"IPMG is considering instituting a policy where we will not support any suppliers who decide to do business with Geon should it re-emerge under the ownership of KKR and Allegro leaving creditors unpaid."
[Related: Ups and downs of Geon]
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