No action likely on SolNet

It's unlikely that the major creditors of S Resources, formerly SolNet Ltd, will take action against the newly formed SolNet Solutions company into which S Resources assets were transferred earlier this year.

It’s unlikely that the major creditors of S Resources, formerly SolNet Ltd, will take action against the newly formed SolNet Solutions company into which S Resources assets were transferred earlier this year.

Sun Microsystems, which had a 10-year relationship with its New Zealand reseller, SolNet, claimed S Resources owed it $7.5 million. It and the other major creditor, Westpac, appointed liquidators to the company in March. The liquidators subsequently identified a debt of more than $16 million owed by the SolNet group holding company, SRL Holdings, to S Resources.

Among the complicated web of transactions, SolNet Solutions, which was formed in November last year, acquired the professional services, software development and support service capability of SolNet Ltd (S Resources).

The managing director of the new company, Mark Botherway, says the winding up of the old company is proceeding satisfactorily with no surprises.

“No action has been indicated [by the creditors] against SolNet Solutions, he says.

Sun country manager Rod Severn wouldn’t comment on whether it would take action against SolNet Solutions. Westpac was paid $7 million in November 2003 but in January claimed $1.79 million relating to the cancellation of an agreement for equipment.

Botherway says the company has established relationships with software suppliers such as IBM, Sybase, Actuate and Checkpoint, and that there is still a relationship with Sun. “We’re working with Sun on the ground and with its technology. We have a project manager in a large Sun environment.”

Severn says there is no relationship between the companies. “There is absolutely no contractual relationship between Sun and SolNet. We are not working with then in any accounts across New Zealand that I’m aware of.”

SolNet Solutions has lost none of the former S Resources customers and has, in fact, added “three or four” new larger clients, Botherway says.

“We’re trading profitably and anticipate achieving revenues for the calendar year in the order of $15 million to $20 million.

“Establishment costs for an operation such as ours were always going to be high, and there have been a number of potential distractions. [However] we remain on target to achieve our original financial forecast for the first year of operation.”

SolNet Solutions has “just under” 100 fulltime staff and around 20 contractors. Botherway says 97 of around 100 former S Resources staff accepted job offers in SolNet Solutions, and the company is now actively looking for new staff.

“Our vendor-independent status has been well received by the market.”

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