Administrators had prelim audit report on IHG

Administrators had prelim audit report on IHG

In discussions with creditors which could rescue the company.

The preliminary results from the administrators' audit of the flailing Intellect Holdings Group (ASX: IHG) are in. And while so far the news is not good for the POS manufacturer, the administrators are engaged in discussions that could save the company.

The administrators, chartered accountants from Taylor Woodings, say their first act will be to apply to the courts for a two month extension while creditors work on a Deed of Company Arrangement, designed to convert the secured debt into equity.

The administrators said that the company's creditors have claims totalling a combined $36 million, or more.

On the other side of the ledger, sales from the company have been "virtually dormant", the administrators said. Further, the company has only a small amount of cash in the bank, and preliminary enquiries have found no recoverable assets.

But they added that IHG has assets in the form of 100% ownership of Intellect International BV, and a 26% interest in TAFMO Limited.

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