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Printers wait on Derwent Howard’s unsecured debts

Printers wait on Derwent Howard’s unsecured debts
by Daniel FitzgeraldSteven Kiernan
Nov 23, 2009
Find more like: Derwent | Howard | Media | Webstar | Printing | quality | group | unsecured | creditors

The administrator for failed publisher Derwent Howard Media has hit back at a newspaper article claiming it had recommended that unsecured creditors, which include several leading printers, accept a deal that would pay out 5c in the dollar.

Last week, The Australian name-checked five Australian printers, including ProPrint's printer Webstar and The Quality Group, as unsecured creditors, said to be owed a total of $1.3m, or around 40% of a total unsecured debt of $3m-$3.7m.

 

While administrator Worrells said it was "still collating unsecured creditors' claims and cannot yet confirm the total amount owed", printers contacted by ProPrint agreed the figures largely matched the actual debts.

 

Quality Group chief executive Paul Canty said Derwent Howard's debt to his company was in fact "a bit higher" than the $245,000 quoted in The Australian.

 

Canty added that a creditors' report from Worrells "detailing the options available" was due today, but had not yet been received.

 

Webstar general manager Warwick Hay also confirmed to ProPrint that his company was an unsecured creditor in the Derwent Howard collapse.

 

Hay said the web offset printer ended an eight-year relationship with the publishing house after "we were informed that the business had been heading into troubles".

 

"The partnership was headed down a track whereby it wouldn't be a viable business," added Hay.

 

He said the unsecured debt was "around" the figure of $678,000 quoted in The Australian.

 

Derwent Howard, which published titles such as Australian Official PlayStation Magazine and Australian 360, was placed into voluntary administration late last month by founding partner and director Jim Flynn, after a turbulent year which saw co-founder Nathan Berkley abruptly leave the company in March and managing director Nick Cutler resign in August.

 

Some of Derwent Howard's titles, including the flagship Playstation magazine, are continuing to be published by Media Factory, a company recently set up by Flynn.

 

The Quality Group's Canty would not comment on speculation that the printer has taken on work for the Media Factory.

 

A statement from Worrells earlier this month said that 40 unsecured creditors had been identified thus far, and that estimated outstanding liabilities totalled $5.2 million.

 

Flynn has not returned request for comment at the time of writing.

 


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Comments: 16
It will be interesting to see the fallout from this... Web offset is already struggling with lower margins... hits like these to the cashflow of businesses that need cash to enable them to carry floorstock can be terminal...
Proprint Magazine - comments icon Posted by Inky McFeeNov 23, 2009 5:18 PM
When you're losing $1million per week, this is no big deal. I'm sure the Blue Star investors haven't even noticed!
Proprint Magazine - comments icon Posted by Tik Tok Tik TokNov 24, 2009 3:23 PM
I'm sure they would have seen Proprint's tweets on the subject! $1 million a week is big bucks and might be an exageration Tik Tok, but your point is duly noted. Lets see what emerges in the new year when work traditionally slows and pressure is put on everyone's cash flow.
Proprint Magazine - comments icon Posted by inky McFeeNov 24, 2009 3:37 PM
I think there's a been a heap of retrenchments at Blue Star today?
Proprint Magazine - comments icon Posted by Industry WatcherNov 24, 2009 6:23 PM
Correct Watcher, some of the top brass (as many as 4) were walked today...sadly more to come i am told.
Proprint Magazine - comments icon Posted by Inky McFeeNov 24, 2009 8:28 PM
Does anyone have any further info on what is actually happening at Bluestar ? Did more people get retrenched or not, are they the next to go ? I heard they have been busy ? Gee this would be bigger than Energi if it happened ? Lets hope not for everyones sake. Shakey times for staff, and suppliers eh !!!!
Proprint Magazine - comments icon Posted by worriedNov 25, 2009 3:56 PM
I keep hearing more to come sadly. All those great companies lost, and their identities jettisoned to become part of a crippled juggernaut.....
Proprint Magazine - comments icon Posted by Inky McfeeNov 25, 2009 4:10 PM
I think inky McFee is also "The Stig" ? Busy man eh !! C'mon Inky "Out yourself" !! Ha Ha
Proprint Magazine - comments icon Posted by Observer.Nov 25, 2009 4:18 PM
Out myself? Is that a deliberate double entendre?
Proprint Magazine - comments icon Posted by Inky McFeeNov 25, 2009 4:40 PM
C'mon Inky. How do you know so much about the implosion of BS? What do you know about PWC being called into GEON, fact or fiction?
Proprint Magazine - comments icon Posted by Industry WatcherNov 25, 2009 5:42 PM
Its all about netoworking IW... and the Geon rumour is news to me. Obviously its no secret that like Bluestar, the debt burdoned PE backed players are bleeding. Both of them have a long line of ex employees scattered around the industry - sometimes information is good, sometimes its not fit to print - but we all enjoy a good gossip. All i'm trying to do is get Proprint to offer me a job writing a monthly article! But, they probably couldnt afford the legal fees and settlement costs that could incur....
Proprint Magazine - comments icon Posted by Inky McFeeNov 25, 2009 5:51 PM
But Inky, BS have got it all sorted! They just got a guy from Silicon Valley who is going to make everything ok! *phew* They nearly had major problems!
Proprint Magazine - comments icon Posted by Industry WatcherNov 25, 2009 10:53 PM
When you look at the printing businesses that have survived, even grown in the GFC era, they are all small to mid-sized, personally managed, tight-ship enterprises including most franchises. Sheetfed printing by nature is an SME service model. What the PE-backed consolidators did was remove this great strength (and brands) from the business model once a shop was acquired. Opus would be a brilliant exception to this. Best o' luck to those caught in the crossfire.
Proprint Magazine - comments icon Posted by Finky McHeeNov 26, 2009 9:10 AM
Spot on Finky - the common denominator is the destruction of the 'brands'. McMillans, Link, Craftsmen, Websdale, Agency et al., were all driven by hands on owners. What i can't believe is that these PE guys, who are supposedly clever, didnt look at the Grandaddy of them all, PMP. Look at the great businesses ruined by amalgamation into a single brand. Keppells, Progress, Show Ads, Browns, Wilkes - I could go on... all merged in 1990 when Murdoch needed cash. And they have hardly paid a divedend to shareholders since. I'm officially making an offer to buy Bluestar or Geon. I have $14 and a tim tam? any takers?
Proprint Magazine - comments icon Posted by Inky McFeeNov 26, 2009 2:22 PM
Blue Star is sinking its ship? This is a funny joke. I hope it sinks quicker.
Proprint Magazine - comments icon Posted by just laughingNov 27, 2009 6:21 AM
take the profitable titles, start afresh and leave everyone else to pick up the pieces... sterling effort!
Proprint Magazine - comments icon Posted by ahemNov 27, 2009 3:27 PM
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