Mbrane suffers cash-flow damage; collapse likely

Mbrane suffers cash-flow damage; collapse likely

Troubled wireless solution provider mbrane Asia Pacific has appointed John Melluish of Ferrier Hodgson as administrator for its Australasian operations, holding a meeting of creditors in Sydney last week.

John Armenakas, mbrane Asia Pacific's managing director, claimed a number of options were still on the table. He added that being a publicly traded company it was difficult to comment any further, referring instead to a letter posted in the investor relations section on the company's Web site by CEO and chairman Scott Broomfield.

According to the letter, dated July 12, Seattle-based mbrane may well "cease to exist" unless support was found for options such as partial acquisition and refinancing.

In the shareholder letter, Broomfield stated: "On July 10, we had another Web chat. For our longer term investors, I am sorry that the chat went so poorly, given the number of persons that did not want to listen.

"As I said on the chat, we should have definitive news within two weeks. We continue to work to construct a re-organisation plan that results in Mbrane's best value," the letter continued. "Although anything can change at the last moment, let me give you what I think is the most likely outcome. This is, of course, subject to the "safe harbour" language as it relates to the uncertainty of forward-looking statements.

"The most promising alternative appears to be the one where Mbrane would cease to exist as an operating entity," Broomfield said.

Further on, Broomfield stated: "We were not able to make the complete payroll at the end of June and needed to let all non-essential people go. This means we are down to approximately 35 people worldwide. We have maintained our most senior people in both London and Sydney, as a couple of our remaining alternatives would include operations in those locations.

"We continue to operate out of Seattle, but have effectively shut down operations in the other parts of the world, including Alpharetta, Georgia, and Redwood Shores, California," he added.

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