Interest in sale of Radionet

Radionet receiver John Cretgen says there is a 'significant' interest in the wireless internet provider, which was put into receivership earlier this month when its parent company Wilson Neill was put into liquidation.

Radionet receiver John Cretgen says there is a "significant" interest in the wireless internet provider, which was put into receivership earlier this month when its parent company Wilson Neill was put into liquidation.

One of several subsidiaries of Wilson Neill, Radionet was placed solely into receivership on April 4, whereas the parent company and some other subsidiaries were placed both in receivership and liquidation, Cretgen says.

Radionet general manager Wendy Stein says told Computerworld on Friday that expressions of interest would be advertised in several newspapers "in the next few days" and industry talk was that around 12 parties were interested in possibly acquiring the company, which does web hosting and acts as an ISP as well as providing wireless internet services.

Stein said Radionet was due to do a new installation at the weekend and that it is now cashflow positive, despite reporting a $3.5 million loss according to Wilson Neill accounts released before Wilson Neill went into liquidation.

"Radionet is paying its creditors from its own debtors - on a monthly basis, earnings before interest, tax and depreciation are positive."

Among Radionet's clients is the Michael Hill Jeweller store chain, 17 branches of which are wireless customers and whose network is a nationwide VPN, Stein says.

In June, Panamanian-based WeCU bought just over half of Wilson Neill and also acquired 27% of Radionet.

Both WeCU and its subsidiary Transram appear to be defunct, as their domain names are being touted for sale on WeCU's website.

A potential deal that would have involved Cube Capital buying Radionet lapsed shortly before Easter.

Cube Capital managing director Simon Wallace says the deal fell though because Wilson Neill's directors "couldn't put pen to paper" and sign the proposal, which he describes as "a rescue package".

It would have involved Wilson Neill retaining "a substantial shareholding" but with Cube Capital-appointed management in charge, Wallace says.

As for Stein's statement that Radionet is now cashflow positive on a monthly basis, he says it is nonsense to describe a company in receivership as being in that position.

"Their creditors have all been frozen."

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