Bank confirms: S Central not in receivership

The shell of IT integrator S Central remains under the control of its founder and group managing director Peter Mavridis after a deal was struck with the company's major creditor, the National Australia Bank.

Both the company's secured creditor, The National Australia Bank and Mavridis have moved to correct the record after it was reported that receivers were in control of the company and investigating "what assets remain" to sell.

Mavridis is in the throes of winding down the company after selling its assets, goodwill and customer base to Brennan IT.

A spokesman for NAB told CRN that the Deloitte corporate reorganisation partner Tim Norman had been appointed only to manage the book debts of S Central.

"The director of the company remains in control of the company," the NAB spokesman said.

Mavridis confirmed with CRN that Norman's appointment is not technically a "receivership."

"It's not correct," Mavridis insisted. "I haven't appointed receivers. The NAB and I chose to appoint Deloitte specifically to collect money owing from debtors, and sort out an order of payment."

Under his plan, Mavridis insisted that staff will be paid first, secured creditors second, unsecured creditors third, with shareholders taking what remains.

Mavridis said it Deloitte had been appointed because the NAB wanted to ensure "its interests were protected" before any other creditors.

"We contracted Deloitte to manage the collection process, to take charge of the NAB's security position."

Mavridis said he is in the final stages of transferring assets to Brennan IT, after which S Central will go "straight to liquidation."

"We are just waiting on a couple of equipment leases to be signed across," he said.

Mavridis said he will work with Brennan IT for three months before deciding what to do next.

Meanwhile, S Central staff in contact with CRN said that they have still not received any back-payment or entitlements for their work at the company.

Mavridis has told staff that he will email them with regular updates on the asset sale to Brennan IT and the status of their unpaid entitlements.