Administrator sees light at the end of Applaud's tunnel

Sydney-based IT integrator Applaud IT will more than likely come out of its voluntary administration within weeks and continue to do business unscathed.

The integrator went into voluntary administration on October 12, with Andrew Johnson from Johnsons Business Recovery and Insolvency appointed as the administrator.

Johnson told CRN that the integrator has since been meeting its debts and has been paying its bills when due.

"This company has been trading well during [this time]," he said. "We expect it to be out of administration in a matter of weeks."

Johnson claimed the company went it voluntary administration because Applaud couldn't come to an arrangement with the Australian Tax Office over a debt it owed.

Ricci Danieletto, managing director at Applaud told CRN the debt arose when the company was being established from the ashes of the Australian arm of US-based CyberNet, which was placed into liquidation.

With the set-up a of new business, Danieletto said he had to keep CyberNet's managed services support team going for two months.

"We went to the ATO and said we are going to occur a tax debt because we are building a business," he said.

"We then entered a payment arrangement with the ATO and it was all going ok, until it sent us a  form."

Danielotto said the form gave the company 14 days to either wind down the business or enter into voluntary administration.

After legal advice, Danielotto said the company took the latter option.

"The guts of it was the ATO wouldn't roll over and do a deal," said Johnson. "It's difficult to [pin point] the reason. There were different views from different departments within the ATO."

Danielotto said the company has been performing well and that ultimately, Johnson will have the final say on the outcome of the business between the 16th-25th November.

"Applaud has had strong support from its employees and customers," said Danielotto.

"Hopefully we've shown creditors that we are a legitimate organisation that is not planning on going anywhere."