Following reports in The Australian this week, Derwent Howard is in administration and faces being wound up.
Back in September Publishing Edge reported that email marketing firm FortyTwo International was the supplier who had started procedures to wind up the company however these reports were dismissed at the time by Jim Flynn who told the media the action was a mistake and "It was an administrative error in relation to a statutory demand that led to the situation."
In an unusual twist it now appears that co-founder Nathan Berkley has moved to Spain to be with his family and has cut off all contact. This follows the resignation of managing director Nick Cutler in August.
The Australian quoted Flynn as saying, "I am compelled by Nathan's decision to move overseas and Nick's decision to resign to take a look at the structure of the company." However, after the application by FortTwo International was discharged last Monday in the NSW Supreme Court when the debt was brought out by a man named John Liu the next day Flynn put the company into voluntary administration on October 27.
As reported in The Australian creditors of Derwent Howard are now waiting to find out how much they will get. Insolvency company Worrells, who have been appointed by Flynn said: "We note that Derwent Howard had ceased to trade before administrators were appointed, and it appears the company has limited assets.
"We are talking to the company's director Jim Flynn about a possible deed of company arrangement and will advise creditors in due course of our findings and recommended course of action."
To read the full article from September click here.
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