Shere Arts has resorted to a creditors voluntary agreement (CVA), as the only way to resolve its ongoing wrangle with IBM.


"It was the only reasonable way I could get out of the contracts with IBM," said Shere Arts director Martin Warner.


The CVA has been organised by London-based practitioners Carter Backer & Winter.


A creditors meeting will be held on Monday (2 April) when creditors will vote whether to accept the payment terms outlined in the CVA, which will promise to pay them 100% of what they are owed within two years.


Warner said Shere Arts, which has ceased trading, hoped to pay creditors back by the end of this year.


Cash will be raised by the sale of its assets, including its freehold premises and a Roland Favorit offset press.


Last month IBM Shere Arts main creditor removed the InfoColors, worth 1m (PrintWeek, 9 February). The two firms have had an ongoing wrangle over the presses, which included a 240,000 county court judgement issued by IBM against Shere Arts last summer for unpaid maintenance bills.


IBM business manager for northern Europe David Myers referred PrintWeek to IBMs legal department, which would not comment on Shere Arts.


Warner claimed Shere Arts had problems with the cost and reliability of its InfoColors.


Shere Arts former staff are now working for Shere Digital which designs intranet sites and handles the variable data preparation for personalised printing. Warner claims the firm is currently working with two or three digital printers to provide the output. He is considering whether or not to invest in another digital press.


Story by Jeremy Allen