An Australian data quality company whose New Zealand customers include NZ Post, the Ministries of Justice and Health, and Telecom is in administration and may have been insolvent since February.
Mastersoft Systems’ administrators say in a report to creditors that an offer for the business of $700,000 was accepted on May 27 and that the proceeds from the sale have been applied wholly to the secured creditor’s debt. The purchaser is not identified.
The administrators consider the company may have been insolvent since February 2011. They have identified a number of transactions as “unreasonable payments to directors” and “related party transactions” that may be subject to recovery actions.
Mastersoft maintains an office in Wellington with two staff. The future of the New Zealand operation is unclear.
The administrators estimate that there will be no return to ordinary non-priority creditors of the company after the payment of the administration expenses, secured creditors’ liability and employee entitlements.
A creditors meeting has been called today to decide the future of the company by chosing one of three options:
- Execution of deed of company arrangement;
- that the company be wound up; or
- administration comes to an end (and control of the company reverts to the directors).
Mastersoft Systems, which was incorporated in 1999, is a private company and the main operational entity of the Mastersoft Group.
The administrators say the company appeared to have been profit but in January its major customer, Telstra, cancelled all contracts and orders The Telstra contract comprised more than 50 percent of the company’s revenue at the time.
The directors decided to appoint administrators in May. Between the end of April and the appointment the company had laid off 14 staff.
Sales had fallen from $A12.2 million in fiscal 2009 to $9.7 million in 2010.