Sale of Supply Chain Pty assets queried

By ADAM GIFFORD

The liquidator of failed SAP implementer Supply Chain Group has taken legal action against its former Australian subsidiary over the sale of the company's assets.

Stephen Lawrence, from Ferrier Hodgson, said he is waiting for a statement of defence from Supply Chain Pty head Tony Carr about the pre-liquidation transaction, which involved about $300,000 of office equipment, computers and debtors.

"We believe the transaction was done under value," Lawrence said.

Supply Chain's New Zealand business, implementing enterprise management software from German vendor SAP, hit the rocks in 2000 when SAP sales here dried up.

However, it had opened an Australian branch, Supply Chain Pty, which traded profitably using New Zealand-developed implementation methodologies.

When directors failed to raise venture capital for expansion, they took a plan to creditors to sell a majority stake in Supply Chain Pty to Carr, an Australian SAP consultant.

Carr paid $500,000 cash - most of which directors believed would clear a $350,000 debenture to the National Bank - and agreed to pay creditors, owed about $1.2 million, 50c in the dollar over two years.

On that basis the New Zealand assets were transferred to Supply Chain Pty.

Carr made one payment of 5c in the dollar. He used the debenture to put Supply Chain Group into receivership.

When Supply Chain Group was put into receivership, its remaining asset was the 49 per cent stake in the Australian subsidiary.

Last November, Carr told the Herald the Australian business could be worth up to $10 million.

According to a report filed with the Companies Office, receivers McCallum Petterson have sold those shares to Supply Chain Pty's other shareholders for $550,000.

Receiver Bruce McCallum said he accepted Carr's offer "after independently valuing these shares, by reference to financial information provided by Supply Chain Pty".

Carr got back $350,000 to settle his debenture, McCallum Petterson got $22,000 in receiver's fees and legal fees, and the balance went to the second debenture holder, former director Peter Fletcher, who claims to still be owed a further $832,000.