Former Mesh Computers owner back in charge
Former Mesh Computers owner retakes control of the company he left with massive debts
The former owner of Mesh Computers has effectively retaken control of the company, which went into administration with debts of more than £2 million last year.
Mehdi Sherafati ran Mesh for over 20 years, before the company entered administration in May 2011. At the time of administration, the company owed almost £400,000 to Her Majesty's Revenue and Customs, and £1.7 million to unsecured creditors, including customers and suppliers of the British PC manufacturer.
We will continue to support existing Mesh customers and make sure that warranty support is provided with the best standard of personal care possible
The administrator sold Mesh Computers to a former supplier, PC Peripherals Ltd, in a deal worth £1.55 million. £1.498 million of that sale price was awarded to Mr Sherafati, who was the only secured creditor of the company, having lent the company £1.7 million in January 2011 in the form of a debenture.
Now, Mr Sherafati has regained control of his former company. Companies House records show that he was appointed as a director of PC Peripherals Ltd on 8 February. The company has one other director.
A spokesman for Mesh Computers' administrator, MacIntyre Hudson, told PC Pro that Sherafati was interested in buying the business when it first entered administration. "At the time Mr Sherafati did express an interest, but not at the levels that we were looking to achieve for the sale of the business, and therefore he didn't proceed with any formal offer after we were appointed," the spokesman said.
"I wasn't aware he is now involved with PC Peripherals, and we would have to consider what effect - if any - that has on the sale we completed nine months ago."
A condition in the sale agreement with PC Peripherals stated that if "the purchaser [PC Peripherals] was to then sell the business on at a higher value than the current sale price, then the Joint Administrators will be entitled to 20% of the sale proceeds in excess of the current agreed completion price".
MacIntyre Hudson said it would investigate the terms of the new deal if asked to by one of the company's creditors. "We would have to look at whether an actual sale of the business of Mesh Computers has been completed with that transaction happening," the spokesman said.
Back in business
In a statement sent to PC Pro, Mr Sherafati said:
"Having worked hard on developing Mesh for almost a quarter of a century, I want to restore Mesh to the forefront of the UK system builder market.
"I have bought back the company and have again begun investing in the business to grow the organisation. New premises and a completely new IT infrastructure are already in place and we are already working with Intel, AMD and other key manufacturers to generate new offers for 2012.
"We will continue to support existing Mesh customers and make sure that warranty support is provided with the best standard of personal care possible. The market has been very tough since the world’s economy went through a downturn in 2007/8, but all of the information we’re hearing from research companies like IDC says that the PC industry will expand in 2013/14 – driven by new operating systems, processors and graphics cards.
"Mesh will be part of that upsurge, leading the way through investment in R&D. We will be doing our best to ensure that Mesh customers get award-winning product, with excellent service at a competitive price.”