Aussie POS developer owes $36M to creditors

The ASX listed company's board of directors appointed Michael Ryan and Ian Francis of Taylor Woodings on 6 June, as ‘joint and several administrators’ pursuant to section 436A of the Corporations Act.

In a statement to the ASX, the Administrators have taken control of the company’s business, property and affairs. Ryan said in terms of liabilities the secured creditors have advised that they have claims against IHG for $36 million collectively.

“There are legal actions with uncertain claims. At this stage other secured creditors claims are estimated to approximate $735 000,” said Ryan. “We have been advised by the secured creditors that they are proposing a Deed of Company Arrangement to restructure IHG which would involve an offer to the other stakeholders of the companies and a conversion of the secured debts into equity. To date we have not received a formal proposal in this regard.”

In a statement to the ASX, Ryan said it has met with Allan Sullivan, a director of the company, Ian Morgan, the company secretary as well as representatives of the secured creditors, many of whom are also shareholders.

According to Ryan, information gathered during the administrator’s investigation showed IHG has two main assets; 100 percent interest in the shares of wholly owned subsidiary Intellect International BV (IIBV) – headquartered in Belgium; and its 26 percent interest in TAMFO Ltd. “We do not have yet have a view as to the value of these assets,” stated Ryan.

Although Sullivan is also a director of IIBV, the wholly owned subsidiary does not come under the administration and is still in the hands of its board of directors, he said.

“The 31 December 2007 accounts shows that shareholders have invested some $84 million since Intellect’s incorporation in 1989. Aside from a small amount of cash at bank, our preliminary enquiries have not revealed any material recoverable assets,” Ryan said. “It has continued to incur expenses. There are external unsecured creditors with estimated claims of $220,000.”

The administration intentions for the company include; seeking a two month extension from the Court of the convening period for calling the second meeting of creditors; work with advisors and consider the best method for dealing with the company’s assets; encourage the secured creditors formalise any proposal they wish to make; and conduct a thorough investigation into the affairs of the company, stated Ryan.