GDC goes into receivership

Telco contactor goes out of business after selling off $2 million worth of assets

GDC has gone into receivership at the request of its directors.

A statement on the NZX this morning says “the voice and iVASP business units have now been sold and settled, both realising satisfactory goodwill premiums, which is far better than would have been the result from a cessation of trading and initiation of receivership ahead of completion of those divestments.

“While the directors and management have worked hard to conclude a sale of the remaining field services business unit, it is apparent that it would not be possible to conclude a transaction quickly enough to provide net benefits for the company compared to proceeding into receivership.”

The statement goes on to say “the directors are hopeful that the majority of field services personnel will be offered employment by the other field services contracting companies, with whom discussions have been held.”

All GDC’s directors have resigned.

GDC had been on a downward spiral since late last year, when it laid off 27 Auckland staff, a quarter of its headcount in the region.

At the time, then-GDC managing director Ross Jenkins told Computerworld that changes in the voice services market, such as the arrival of Cisco IP telephony as a viable technology and the move into voice by systems integrators, contributed to the difficult trading conditions that made the cuts necessary.

Telecom’s entry into that part of the market — which it traditionally hasn’t been a player in — also had an effect, Jenkins said.

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