IPMG weighs in on the growing fury in the local industry at the prospect of a debt wipeout by KKRM to bring GEON back from the dead.
Industry outrage is growing at the developments around the appointment of receivers to GEON. Trade suppliers are calling for a new attitude to companies that force them to take a massive debt hit as a means of restructuring. Speaking on condition of anonymity a number of suppliers told Print21 they are sick and tired of being left holding the bag when printing companies go under.
In a press release, Stephen Anstice (pictured), CEO of IPMG, the second largest printing company in the region, says the company is 'staggered' by the developments.
"We cannot conceive how the reported plan of KKR and Allegro to emerge as the new owners of GEON can be allowed without all creditors being paid and have called on the PIA to explore what action can be taken to protect the suppliers and staff of GEON.
"Many suppliers will be facing bankruptcy as the impact of this receivership is felt throughout the industry and its knock on effects could lead to serious consequences for many other suppliers, staff and customers."
He said IPMG is considering a policy where it will have nothing to do with suppliers who do business with GEON if it revives under the present ownership arrangements without paying its debts. He has called on Printing Industries to explore what can be done to protect the suppliers and the staff of GEON.
Anstice's proposal has also been mirrored by trade suppliers themselves, with several of the nation's major suppliers temporarily ceasing their supply stream to GEON while the print group is in receivership.
IPMG and GEON are both members of Printing Industries. Bill Healey, CEO Printing Industries has met with the receivers and expressed his focus on ensuring fair and proper treatment for GEON suppliers and employees. "I told them I was very conscious of the industry's frustration at phoenix-style situations and my disappointment if anything like that should happen with GEON," he said.
At the same time he appealed for the industry to stay calm and see what the proper processes produce.
The Graphic Arts Merchants Association of Australia (GAMAA) is also calling for a calm and measured industry response to the unfolding GEON saga. In a statement published on 25 February, GAMAA said:
"GAMAA as the industry suppliers’ Association, supports the call for calm expressed by Printing Industries (PIAA) CEO Bill Healey.
"Executive Director, Karen Goldsmith said, 'Any situation where creditors are at risk of non-payment, especially in such large amounts, can have significant flow on effect to the industry as a whole. We hope the right thing will be done by suppliers and employees in this unfortunate situation, however, GAMAA will not make comment on speculative scenarios'."
"Goldsmith and GAMAA President Adrian Fleming are monitoring the situation and are in communication with the GAMAA membership and the PIAA. The counsel from the GAMAA Executive is to allow due process and both Goldsmith and Fleming intend to meet with the receivers in due course."