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back to article Administrator: 2e2 owed £412m to creditors when it went titsup

2e2 Ltd crashed out of business owing creditors a little over £412m, the firm's administrator FTI Consulting has confirmed in its statement of affairs. The document, seen by The Channel, revealed debts secured by floating charges of £161.5m pertaining to the integrator's banking syndicate, and unsecured non-preferential claims …

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Anonymous Coward

Lets not forget the 2e2 staff

There were 320 staff who are unsecured creditors as they are owed their December pay, over time, expenses etc.

The HP Debt collectors have been in touch (excuse me how did you get my postal address?) with staff to try to recover laptops they leased to 2e2. Perhaps they should be looking on ebay.

Now about that IL3 data held on corporate laptops that were never recovered....

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And how much did the administrators

realise and pay themselves?

bet that doesnt get published before the gov pay the staffs redundancy

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Devil

Re: And how much did the administrators

128K for three days work between the 25th and 28th January (paid before administration) and a further 2.5m of accrued partner costs as at statement of affairs filing.....

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Anonymous Coward

Re: And how much did the administrators

Curious numbers. 2.5 million and I guess it would have cost maybe 2 million tops to pay the salaries of the 345 that were kicked out without pay. So, booted to pay the administrators. That action was the first time most of the market found out what was happening. Resulting in any customers that could run, fleeing as fast as possible.

We know that, at that point, there were 70 interested buyers (reported previously). All gone by the following week. In summary, FTI kicked out 345 to ensure there would be funds to pay themselves and killed any chance of a decent sale in the process.

They may never have got a great sale, but I bet it would have been more than 2 million better than the 32 million they achieved. Short sighted and useless.

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Coat

Scary...

Given the frighteningly low gross and net profit margin achieved in distribution, this is going to hurt pretty badly. Even worse for those that can ill-afford this type of loss.

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Anonymous Coward

Any news of what happened to the "bill and hold" kit? There was several million pounds worth of Cisco and other equipment stored in the warehouse.

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Coat

claimed by both 2e2 clients and suppliers..ongoing battle but if clients paid of it, it's theirs.

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Not if 2e2 didnt pay the kit supplier it's not.

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FAIL

FTI Consulting

Hardly surprising that FTI Consulting only realised £32M for the sale of 2e2.

On day one they went straight in with the boot and destroyed parts of the company that were profitable and had some value. What was left was so damaged and incomplete it had to be virtually given away.

The senior management (???) brought about this collapse and they should be investigated to the fullest extent.

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Coat

Re: FTI Consulting

Attitude of Directors, investors along with direction and a lack of proper audit that caused their demise

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Unhappy

And the 2e2 management...

...walk away with suitcases full of money having a right old laugh at the poor employees and the suppliers they conned.

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Anonymous Coward

Re: And the 2e2 management...

But they will need to spend a vast quantity of any such loot on meaningless (and ultimately futile) distractions to avoid having to face up to the fact that they are execrable people.

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Anonymous Coward

Re: And the 2e2 management...

You miss the point - these managers have no concience or morals so they a fully capable of enjoying their ill-gotten gains, whilst muttering "Go fcuk yourself" to people like you (and me).

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Coat

That would depend on the strength of the suppliers ROT terms and the weighing up of legal costs to enforce versus value of recovery..never easy.

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