50 redundancies at AWA

Approximately 50 redundancies have been confirmed at Australian IT firm AWA Limited by joint administrator Alan Walker of PPB Advisory.

"The IT division had about 180 employees, so there's about 50 redundancies following the sale [to Cabrini Health Limited]," Walker told CRN.

As reported yesterday, about 130 jobs will stay as part of the sale of the business to not-for-profit Catholic healthcare provider Cabrini Health.

AWA also uses hundreds of service agents, which are not employed by AWA. Commenting on these workers, Cabrini's acting CEO Judith Day said: "We certainly want to retain their services, because they are just as important. We certainly want to make sure we can service the rural areas of Australia."

There will be a second meeting of creditors held on 30 May, when the creditors will decide whether to put the company into liquidation, according to Walker.

AWA's creditors are not part of the sale. "Cabrini have purchased the business and assets, not the shares, so the creditors are still creditors of AWA Limited," said Walker.

While terms of the sale were not disclosed, Walker said it includes "all assets" in AWA's ICT division, including all customer contracts, plant and equipment and IP.

AWA also had an audio visual division which was not included as part of the sale.