Sydney-based telco provider wound up with creditors claiming $1.1M in debts
- 06 August, 2018 11:47
Telecommunications services provider Wire Networks has been wound up with creditors claiming $1.1 million.
Wire Networks was registered with the Australian Securities and Investments Commission (ASIC) in March 2014, offering NBN plans, in addition to ADSL, mobile and landline offerings.
An application for winding up the Sydney-based telco services provider was filed with ASIC on 26 June with Alan Walker and Ozem Kassem of Cor Cordis appointed administrators.
ARN understands that the decision to wind up the company was voted during the second meeting of creditors held on 30 July.
Among the creditor claims are $58,300 by the Australian Taxation Office, alongside a claim of $242,417 from the Australian wholesale telecommunications aggregator Buroserv Australia.
There is also a claim of $824,655 by Nahi Nasri Gazal who was a director with the company between April 2014 and April 2015, and again between January and May 2016, according to the copy of minutes of the second meeting.
During the meeting, a representative for Buroserv Australia enquired as to whether Gazal may be considered as a shadow director of the company as he had entered into a master service agreement with Buroserv in 2014.
The administrators have informed that the director of the company had been reported to ASIC for failing to provide a report as to affairs of the company.
A report to creditors from 20 July revealed that the company had been suffering from "ongoing trading losses" and that it had been relying on third party funding to maintain the operations.
The administrators have also reviewed a sales agreement which was put forward before the administrator's appointment.
"After careful consideration the Administrators agreed to terms for the sale of the business and customer base which is being finalised," the administrator told ARN.
Walker and Cordis also liaised with another business interested in acquiring the company but concluded that the existing sale agreement was in the best interests of creditors.
Wire Networks declined to comment.