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European Micro Plc to go into liquidation
All part of EMH being stuffed
European Micro Holdings (EMH) is to liquidate its debt-ridden UK-based distributor European Micro Plc which is going to leave it without an operating business.
EMH, the broker of top brand computer hardware, has had major debts called in by a major shareholder. EMH is expected to default - which will mean it will lose its interest in American Micro Computer Center (AMCC). The debt call followed the NatWest bank cutting its exposure to the EMH.
EMH is liquidating EMP, becasue EMP's main lender in Europe - also NatWest - to temporarily freeze accounts for the outfit, and call in its loans.
To pay off the NatWest loan, European Micro Holdings co-chairman Harry Shields stepped in and advanced the $630,000 needed.
Shields has also pumped $625,000 into EMP to staisfy a loan to EMH, and another $618,000 to purchase EMP's inventory.
Yesterday EMH said Cheshire-based European Micro Plc, which has 20 employees in the UK, intends to go into liquidation in order to pay Shields and other creditors. ®