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Dick Smith administrators seek creditors meeting delay

27 Jan 16

Administrators for Dick Smith Holdings will front the Federal Court of Australia this week to ask for approval to delay the next meeting of creditors until August.

The administrators, McGrathNicol partners Joseph Hayes, Jason Preston, Jamie Harris and Matt Caddy, filed an application for orders granting an extension of time fo rthe convening period ofor the second meetings of creditors of the Australian Dick Smith entities.

The application will be heard in the Federal Court of Australia in Sydney tomorrow.

If granted, the timing for the second meeting will be extended up to and including August 02.

The company was placed into voluntary administration and receivership in early January.

Receivers Ferrier Hodgson say Dick Smith creditors are owned nearly AU$400 million dollars, with secured creditors owed $140 million and unsecured creditors owed $250 million.

The company’s demise came just two years after it was floated on the ASX at $2.20/share, giving it a valuation of $520 million.

The company had been acquired by private equity firm Anchorage Capital Partners in late 2012, for AU$20 million.

Earlier this week the receivers announced the closure of 27 David Jones Electronics Powered by Dick Smith concession stores, affecting the jobs of 181 staff. 

Ferrier Hodgson says the closure of the stores is 'a necessary step in the restructuring to assist in ensuring the commercial viability of the Dick Smith Group businesses'.

The stores are due to close today.

Ferrier Hodgson is in the process of finding a buyer for the Dick Smith business,  a process expected to continue through until late February.

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