Hopes for buyer bids amid Cloud DC liquidation
- 11 April, 2017 05:30
Cloud DC’s chief financial officer, Desmond Robinson, remains hopeful that the company, which entered liquidation on 28 March, will find a buyer for its remaining assets and intellectual property.
The Queensland-based hosted desktop provider, which counted Amazon Web Services (AWS), Microsoft, Citrix and Trend Micro among its vendor partners, entered voluntary administration on 22 February, with more than $380,000 owing to creditors.
The company’s creditors include Safetynet Communications and the Beltane Family Trust, according to documents lodged with the Australian Securities and Investments Commission (ASIC).
In a creditors’ meeting held on 28 March, Robinson asked whether the voluntary administration of the company could be adjourned for two weeks to ascertain if the parties that had previously contacted the administrators to express an interest in buying its assets would make a formal offer.
Liquidator, David Whyte of BDO, advised that, as at 28 March, no formal offers or expressions of interest had been received from interested parties for the company’s intellectual property and assets.
Whyte did indicate, however, that the administrators were still liaising with two parties that had previously shown an interest.
At the same time, Whyte said that a sale of the company’s intellectual property and business assets could occur regardless of whether the company was in liquidation or in voluntary administration, ad that winding up of the company would likely continue for between six to 12 months.
According to Robinson, a buyer would require Amazon Web Services (AWS) to continue with the company’s product.
Whyte, however, said that correspondence had been sent to AWS advising of the voluntary administration, but a response had not been forthcoming.
Regardless, a motion that the company be wound-up and placed into liquidation was passed.
The liquidation comes less than a year after the company signed a global CSP Distribution agreement with Citrix, placing Cloud DC’s Workspace product in front of 10,000 Citrix partners globally.
“Our first priority is to work with Citrix to develop channel programs for our flagship product, Cloud DC Workspace,” Cloud DC CEO, Steve Robinson, said at the time. “Our initial focus is North America, followed closely by the EMEA and APAC regions.”
Offered as a white labelled, bundled infrastructure/management layer, the Cloud DC Workspace offering was aimed at virtualising applications and delivering them to end devices of users’ choice.
Just prior to the Citrix deal, in June 2016, the company signed its first North American reseller, bringing on board Summit Technology.
The agreement came just months after appointing Cloud Lucidity as its exclusive distributor across the Pacific, as it worked to boost its presence internationally.
Before inking the deals, the company had been given $1 million funding in 2015 under the Federal Government’s Entrepreneurs’ Program for its OfficeBox offering, an IT platform aimed at “transforming” software and data delivery storage.
It is understood that the company posted losses in both the 2015 and 2016 financial years.