CPS Technology leaves millions in debt

ICT solutions provider CPS Technology Group has appointed administrators, with one vendor owed almost $2.3 million and the tax office claiming $1.7 million.

A report filed by administrators Nick Combis and Gavin Moss of accounting firm Vincents stated that comms vendor Interactive Intelligence lays claim to $2.27 million from CPSTG. NEC Australia is owed just more than $300,000 from the Melbourne-headquartered reseller.

Interactive Intelligence ANZ vice president Brendan Maree said the company is "not in a position to comment at this time". A spokesperson for NEC Australia declined to comment on the CPSTG situation, citing corporate policy on financial matters.

The Australian Tax Office also claims $1.7 million, although CPSTG disputes this. The Deputy Commissioner of Taxation has filed a winding up application against CPSTG, with the case due to be heard by the Supreme Court of Victoria on 18 September.

It is understood that the company that is under administration is no longer trading.

On 30 June, the Victorian assets were sold to a related entity named Call Processing Systems, which was CPSTG's sole shareholder. Call Processing Systems is now operating under the CPS Technology Group brand.

Managing director Seamus Nash and general manager of finance and operations Mark Dick told CRN that this other company is offering different services to the old CPSTG.

"We're providing different suites of products and remodelled the business. We now have a managed services offering and introduced new products that weren’t in the old company," said Dick.

Dick also said that 97 percent of existing staff from the old CPSTG had transitioned over to the new entity.

The administrators are currently investigating the "commerciality" of this sale. CRN has verified that Seamus Nash is a director of both the old and new companies.

Mark Dick told CRN that the new venture currently has "a good relationship" with Interactive Intelligence.

"We're in constant discussion and they're supporting us in whatever activities we are undertaking with new business, despite the debt," he said.

Interactive Intelligence's Maree refuted this claim, telling CRN that the vendor is not supporting CPSTG's new venture in any way.

According to the company website, CPSTG was founded in 1989 and has "strong business partnerships with blue chip vendors such as Telstra, Microsoft, Cisco, Interactive Intelligence, Shoretel, OpenText and AVST".

Update: Interactive Intelligence contacted CRN after publication to clarify that it does not support the new venture.

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