Nomad Telecommunications' plans to become a significant force in the telco market have ground to a halt this week when it announced the appointment of a receiver management company, Deloitte Touche.
The company appeared to be making considerable inroads after it acquired former distributor-cum-integrator FTA Technologies in 1999, and secured a contract to provide carrier services to minerals giant BHP last year.
But when plans to raise $50 million in an IPO failed to materialise, the company suffered a change of fortune.
"It is speculation [that the company will cease trading] at this stage," said a spokesperson from the company. "I can certainly confirm the company has appointed a receiver manager."
Unconfirmed reports suggest the company, which resells carrier services and mobile phones, has survived on thin margins and owes around $9 million to the ANZ bank.
"From the troops point of view we hope to come out of this alive and well," the spokesperson continued.
The fate of Nomad's integration and services subsidiary, Nomad Solutions, which was formed after the acquisition of FTA Technologies, remains unknown at this stage.