Gizmondo liquidators call for creditors meeting

February 22nd, 2006, 16:57 Posted By: wraggster

Following the appointment of two liquidation firms earlier this month, creditors of Gizmondo Europe are being sought for a meeting to assess the value of the remaining company assets and complete the dissolution of the firm.

Gizmondo executives had made numerous attempts to rescue the firm, the latest efforts failing at the beginning of February as the High Court refused an application for administration and forced the company to accept the inevitable liquidation of its remaining assets.

Two liquidation firms, David Rubin and Partners and Bigbee and Traynor, were appointed immediately following the court ruling, and are now seeking contact from any remaining creditors with an interest in the company.

According to the official statement from the liquidators, David Rubin and Asher Miller from David Rubin and Partners are responsible for liaising with the creditors and for realising the value of Gizmondo's assets, while Paul Davis and Tim Dolder, liquidators at Begbies Traynor, will be conducting an investigation into the causes of the company's collapse and extent of the losses.

Gizmondo Europe, the subsidiary of US firm Tiger Telematics, has amassed net losses of approximately GBP 140 million in the nine-month period to September 2005, having previously lost GBP 49 million in the year ended December 31st 2004. Financial irregularities, the resignation of key executives in October 2005 and persistent rumours of criminal ties have all contributed to the company's demise.

Gizmondo's Swedish development studios, Manchester studios and several further EU operations have all been liquidated, and there remains little hope for the survival of its US arm, which could also be sold off in an effort to meet the overwhelming list of creditors.

The investigation into the full extent of the company's financial losses, and the catalyst behind its demise will continue through Begbies Traynor, and creditors are asked to contact David Rubin and Partners in the interim.

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