Internacionale’s suppliers stand to receive a maximum of 0.01% of the £47m unsecured debt owed when it entered administration in February.
PricewaterhouseCoopers, which is handling the administration, told Drapers there would be no creditors’ meeting because there was not enough money in the kitty to make it worthwhile. One supplier, who is owed nearly £500,000, said creditors had been told they would have to foot the bill if they insisted on having a meeting.
Joint administrator Bruce Cartwright said the current level of unsecured debt stood at around £47m, but sources indicated this could rise significantly, with a number of creditors noting the amounts registered were less than the debts they were claiming.
Whatever the final amount comes to, the maximum unsecured creditors can receive is £600,000, owing to administration legislation, which will be divided according to the amount owed. That results in a maximum of 0.013p in the pound.
Secured creditors – which are thought to include Barclays Bank – are owed around £14m. They will be at the top of the list when it comes to recouping monies owed from the retailer’s demise, followed by PwC and then Internacionale employees. The company employed around 1,000 people when it entered administration.
However no one will receive anything until the end of the year at the earliest.
Cartwright said the plan continued to be for Internacionale to trade over the next couple of months to realise as much from the sale of stock as possible.
This week it was revealed that Internacionale’s former director Raj Seghal is on the Asian Rich List, alongside his brother-in-law Sanjeev Mehan, with whom he ran supplier Visage, which was sold to Li & Fung in 2010 for around £173m. The pair are worth an estimated £140m.