ASX-listed system integrator, Synergy Plus, (ASX:SNR), has been placed into voluntary administration following a creditor's request to entirely repay its financing facility.
Richard Albarran, David Ingram, and David Ross of Hall Chadwick, have been appointed as administrators to the company and each of its subsidiaries including Synergy Plus Operations, Air Data and CCP (Equity).
According to a statement on the ASX, Synergy’s wholly owned subsidiary, Synergy Plus Operations, had a financing facility with GE Capital, which advised the integrator to repay the entire facility on or before April 22.
“As a consequence of GE Capital’s request for repayment of its facility, the company [Synergy], at this time, is not able to proceed with the Bond Subscription Agreement with Pacific Alliance Asia Opportunity Fund as outlined on February 28,” the statement said. “The first $500,000 drawdown of the facility would have otherwise occurred yesterday (March 16).
“Through the administration process under the Corporations Act, the company aims to achieve a speedy restructuring and the lifting of suspension of the trading of shares on the ASX."
It plans to propose a Deed of Company Arrangement to shareholders and creditors that incorporates the combination of AirData’s business and the services business of Synergy Plus Operations, as the only operating focus.
Synergy is continuing its discussions with Pacific Alliance Asia about its restructuring plan and on an alternative funding facility.
In December, Synergy revealed its intentions to change its structure from a vendor-centric product reseller towards services. As part of this, it shut down two branches and retrenched about 35 staff.
At the time, Synergy CEO, Garry Henley, said outside of its core customer focus, it was retracting from the desktop market and retraining and hiring new staff to focus on the annuity business model.
In its half-year 2011 financial report to December 31, the company suffered a $5.5 million net profit loss and earnings before tax dipped $4.2 million. Revenue was also down to $65.8 million compared to the previous half-year, which amounted to $76.8 million.
Trading in Synergy shares will be suspended, which stood at $0.026 at the time the announcement was made.
ARN has requested comment from Synergy.