ASX-listed company, Connxion Limited, along with its subsidiary Data 1 (formerly known as Connxion Data), has gone into administration.
It has appointed Bradley Tonks and John Vouris from Lawler Partners as joint and several administrators on June 30.
This appointment does not effect operations of any subsidiary of the company such as Hong Kong.
The first creditors meeting will be held on July 12.
Vouris said he was confident a Deed of Company Arrangement will be put in place, but it will depend on what transpires.
Prior to appointing administrators to the business, it sold its e-Billing business, which was part of Connxion Data to Speedscan. Financial details of the transaction were not disclosed.
Vouris said he was reviewing the sale procedure to determine the sale and is currently looking into whether it was sold at a valuable consideration.
He said it hopes to get a list of note holders, which are owed about $2.2 million.
Share capital was in the order of about $38 million, Vouris said.
“Hopefully that won’t be lost,” he said.
According to the creditor’s report holding company, Connxion Limited, owes creditors in excess of $1.4 million. One of its biggest known creditors is IBM, which is owed $1.03 million, followed by Cisco Systems Capital which is owed $127,254.
Its subsidiary, Data 1 owes more than $12 million to creditors, including $11.5 million to its holding company, Connxion Limited. Other creditors include Marcham Consulting - $130,000; 3D Networks $78,977 and Newell Technologies $59,360.
In June, the company requested a trading halt stating it was in discussions with third parities in relation to its business and assets.
In March, Connxion placed its managed services unit into administration.
At the time, Connxion CEO, Bill Brooks, said the managed services market was very competitive, and highly commoditised, and even though revenue was good, the contracts were very low-margin.
“Going forward, we’ve decided to build our business on data services, e-billing, data analytics, rewards and payments, and we’ve divested our managed services. That’s not what we want to build a sustainable business on,” Brooks said.