150 jobs axed as Synergy faces $30 million debt

The fallout continues from the collapse of Perth-based integrator Synergy Plus with as many as 150 staff to lose their jobs, while the company’s total liabilities look like exceeding $30 million.

GE Commercial Corporation (Australia) Capital is believed to be the largest creditor with the finance company seeking to salvage $4 million from the failed entity. 

The secured creditor last week appointed Perth-based receivers Taylor Woodings to act on its behalf.

Quentin Olde of Taylor Woodings said it appeared Synergy was in financial strife for longer than first thought.

“Our investigations to date show that the company has been in significant financial trouble for some time now and had been in default of its loan covenants from 31 October 2010,” he said.

In addition to GE, it is understood that Synergy has other creditors, including the Australian Tax Office, who was so far owed more than $30 million.

Taylor Woodings' Olde said initial reports that Synergy went into administration following a demand from GE to repay its debt were inaccurate, stressing that the finance company only appointed a receiver after Synergy Plus opted for voluntary administration. 

He said the administrators [Richard Albarran, David Ingram and David Ross of Maxim Hall Chadwick] were partly to blame for the misinformation.

David Ross, an administrator with Maxim Hall Chadwick, confirmed to CRN that around 150 jobs “were in doubt”. 

But, the administrators continue to operate wholly-owned Synergy Plus subsidiary AirData and its subsidiary company AirData Australia, which together employ around 40 staff.

The events of the last few days have come as a shock to many in the industry, especially given recent statements by Synergy to the market that its financial affairs were in good health.

For the past 24 months or so Synergy Plus was on a shopping spree buying several technology companies as it sought to affect its transition from a West Australian, to  a national integrator.

A hint that Synergy Plus was feeling the strain of its rapidly expanding operations came in late February when the company announced to the ASX an arrangement with Hong Kong hedge funds group Pacific Alliance Asia Opportunities Fund L.L.P (PAAOF) for the provision by PAAOF of up to $30 million by way of Bonds, convertible into shares.

Hall Chadwick’s Ross said that he was yet to learn the exact details of the arrangement and therefore could not comment.

 PAAOF did not respond to a request for comment from CRN by the time of publication.

 Taylor Woodings’ Olde said the company would be releasing more information of importance to creditors including staff as it comes to hand. 

“We are currently in the process of assessing the viability of the company and its ability to fulfil existing orders or satisfy ongoing contracts,” he said.

“We will endeavour to maintain communication with key stakeholders, including employees, throughout this process.”

The full extent of Synergy’s woes will be more apparent come next Tuesday March 29 when five separate creditor’s meetings are scheduled to take place.

The meeting for the listed entity Synergy Plus Ltd (ASX:SNR) will take place in Perth, while the meetings for AirData Pty Ltd and subsidiary AirData Australia, as well as Synergy Plus Ltd subsidiary Synergy Plus Ltd Operations, and its subsidiary company CCP Equity will take place in Sydney.