Paper Companies look set to bear the brunt of any shortfall arising from the Dudley UK administration.

Antalis, Ovenden UK, Papyrus, Premier paper Group and Robert Horne Paper are among Dudley UK's estimated 15m of trade creditors.

The Bow-based stationery firm was placed into administration with PricewaterhouseCoopers at the end of September, when 15% of its 600 staff were made redundant (PrintWeek, 5 October).

Creditors are set to deliver their verdict on a proposal outlined by PricewaterhouseCoopers on behalf of Dudley UK.

PricewaterhouseCoopers partner and joint administrator Bob Bailey said: "A proposal has been put forward to creditors and they'll decide on it next Tuesday (4 December). I'm very optimistic that creditors will agree with the proposal, which will allow us to go into the final phase for Dudley."

PrintWeek has received a partial creditors' list, which has an aggregate debt of 2.44m. It is as yet unknown how many, if any, are secured creditors. Bailey said the total figure owed by the firm was 15m.

"The idea of the administration is to give Dudley a new birth and then realise assets for creditors. This will be done after restructuring and when the company is operating at a much better level," he added.

One creditor said: "It's sad to see this happen to an established company like Dudley. We won't be attending the creditors' meeting, though, because there's nothing to be gained."

Another creditor said the onus was on Bailey and Dudley's management to convince creditors that any proposals were workable. "Then we'll know how many will continue to trade with the new company. We are yet to decide," he added.

PricewaterhouseCoopers has also announced the sale of Dudley's Burnley regional distribution centre to AGM Office supplies for an undisclosed sum.

Dudley UK's new Bow warehouse, built on a nine-acre site, is now fully operational.

Story by John Davies