CIty Software

Don't panic (read the last line first!) but this is an interesting article about some of the risks DD faces...
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Melbourne reseller CSW-IT’s former trading entity, City Software Pty Ltd, is being pursued by Dicker Data and an invoice discounting firm over significant debts.
City Software Pty Ltd was placed in external administration by invoice discounting firm 180 Group, which is owed $500,000. Grant Thornton administrators Laurie Fitzgerald and Stephen Dixon were appointed on 15 October.
The situation is complex because there are a number of related entities. According to CSW-IT chief executive Lorenzo Coppa, City Software Pty Ltd is a “non-trading entity” with no employees.
City Software Pty Ltd was established in 1991. There is also fixed unit trust established in June this year. Coppa said his company began trading under this fixed unit trust "to simplify the structure of the business going forward after the sale of eStore", which was sold to Shoply for $1.8 million in March.
Coppa is also the director of another company, CSW-IT Pty Ltd, set up in March.  
According to the minutes of the first meeting of City Software Pty Ltd's creditors, 180 Group raised concerns that City Software Pty Ltd was unable to repay its debts after becoming aware that "the company's debtors were banked with CSW-IT".
Administrator Laurie Fitzgerald told CRN: “180 Group had concerns with the capacity to repay debts, given the recent trading history of the group. We’re currently investigating what’s actually attached to the company, what value is in the company and who its related parties are.”
Speaking to CRN last month, Coppa said City Software Pty Ltd's secured creditor had "acted prematurely" and would “be paid in accordance with the terms agreed."
As well as half a million dollars in secured debt with 180 Group, a number of unsecured creditors are chasing City Software Pty Ltd.
According to minutes from the creditors meeting, Dicker Data is claiming a $500,000 debt, and other unsecured creditors include $16,000 to reseller Advance Vision Technology, $19,000 to Ingram Micro and $4,000 to wholesale telecom provider TruCom.
The administrator has advised that the investigation into City Software Pty Ltd is ongoing, but that it was unlikely that unsecured creditors would see a return.
A Dicker Data spokesperson told CRN that the distributor's debt was insured.