The news comes after Paperlinx solely blamed the UK businesses for its financial woes, after it reported a $28m loss in the first half of the financial year. It has been trying to sell the Belgium and Netherlands firms for some time, with no success.
 
“We deeply regret the impact this will have on employees and all stakeholders of the Benelux operations in the Netherlands and Belgium, but given the circumstances the commencement of this administration process was the only option for the local directors,” CEO Andrew Preece comments, as Paperlinx assures that it will continue to operate normally in Australia, New Zealand, and Asia.

After an extended suspension of its shares on the Australian Stock Exchange, it returned to trade today, up 0.8 of a cent at 2.5 cents as of 12.58pm (AEST).



Administrators of Paperlinx UK, Deloitte, lists the The Paper Company Limited, Howard Smith Paper Group Limited, Robert Horne Group Limited, and Paperlinx Services (Europe) Limited as the UK businesses affected, as they continue to hunt for a buyer for the UK packaging arm that has yet to be affected by the administration.
 
In its ongoing investigation into the affairs of Paperlinx UK, Deloitte has sent out a questionnaire to creditors in a bid to ascertain information such as when they first experienced difficulty getting payment from the companies, and whether they were provided with ‘comfort, security, or assurance’ to allow continuance of credit. Deloitte also asked creditors to detail any dishonoured cheques, and any legal action taken to recover debts.

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