Telecommunications high flyer Telemedia has called in the receivers.
The directors of Telemedia - which does all its research and development in New Zealand - have told the Australian Stock Exchange (ASX) that the receiver, Ferrier Hodgson, will restructure the group business and sell off its assets “without delay” to take advantage of existing interest.
Telemedia's statement to the ASE says the board of directors has been “in discussion with the company’s principal creditors and with a number of parties that had expressed interest in the acquisition of either a strategic stake in the company or the whole of the company”.
Telemedia founder and chief executive Chris Jones took the New Zealand-based company to Australia in September 1999 to seek capital, but kept research and development and back office work in New Zealand.
At its peak the company, which makes and sells telecommunications software, had a market capitalisation of $A700 million. After the tech stock crash of last year the company’s worth fell to around $A50 million. In April, Jones announced he would be moving the head office to the US to have better access to American customers.
Now, according to the Sydney Morning Herald, the company owes $A13 million and has less than $A1 million in the bank and posted a lost of $A3.7 million last quarter. In May the company shares stopped trading in Australia.
The company has blamed its poor financial showing on customers owing it millions in unpaid bills - $26 million last quarter, or 90% of the revenue it earned in that half of the year.