The last nail has been hammered into CHS Electronics' coffin as the distributor announced plans to liquidate. As part of the move, Claudio Osorio, chief executive, has resigned from the company he founded.
The decision to wind down CHS's business activities comes barely a month after it filed for bankruptcy protection under Chapter 11 (CRN, 12 April).
At the time, the company proposed a reorganisation plan that included the sale of CHS's remaining European subsidiaries to Europa IT, a Danish company formed by Mark Keough, former chief operating officer. It stated that creditors representing $275m (£172m) in claims had approved the plan, which would free CHS of its obligation to creditors.
As part of the original plan, CHS also said that it would transform into an Internet incubator firm for companies in the e-business market.
CHS shareholders were due to retain a 75 per cent interest in the reorganised company. The plan assumed that claims against CHS did not exceed $500m.
Industry observers at the time laughed off Europa IT's ambitions to rise from the ashes and re-emerge as a dominant European distributor. They added that the liquidation of CHS would further jeopardise the future of Europa IT.
Although CHS said it still plans to complete the sale to Europa IT, the distributor added that any remaining assets would be liquidated for the sole benefit of its creditors. Shareholders will not receive a penny under the revised plan.
A hearing date for the plan has been scheduled for 11 July.
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