Dudley UKs creditors have unanimously voted to accept the companys creditors voluntary arrangement (CVA), which will see them receive 3p in the pound.

This effectively means that unsecured creditors, many of which are paper companies, will be forced to absorb approximately 14.5m of the 15m of bad debt.

Dudley UKs administration with PricewaterhouseCoopers will end on 2 January, with the birth of the new firm Dudley Office Supplies.

Dudley chief executive officer Colin Smith, who was brought in by Barclays Bank, becomes the firms major individual shareholder.

Smith said: "It was unanimous and means that we can deal with suppliers on normal credit terms, which was critical for the company. The upside for them is that they can deal with the fourth biggest route into the market."

He added that the creditors decision to accept the CVA meant that Dudley UKs 20m of tax losses would be transferred to the company, and would allow it to trade without paying tax for a number of years.

Smith said that Dudley Print, which had staff levels reduced by 50% to 45 employees (PrintWeek, 12 October), would not be sold and would feature as an important part of the new company.

"Print is doing well, its recovering positively. I see it as a unique offering, its something that our competitors dont have," said Smith.

Story by John Davies