Melbourne telco Golden IT calls in administrators

Melbourne-based telco Golden IT has entered external administration, facing low funds, debts and debt recovery action taken against it by an IT outsourcing firm.

In documents filed with corporate regulator ASIC and seen by CRN, administrator Blair Pleash of Hall Chadwick, who was appointed 2 March, made notes on the financial position of the company, including that there were minimal funds available in the bank account, and that significant portions of some $160,000 in debts to the company would be unrecoverable.

Golden IT is listed as a member of the Telecommunications Industry Ombudsman, on the website of which is a short company profile listing a phone number and website that both now redirect to Gtelecom, an ISP registered as a separate entity on 22 November last year, according to an ASIC spokesperson.

ASIC also confirmed both Golden IT and Gtelecom were owned by Golden Group Investments - whom Zahid Baala is the sole shareholder of. All three entities had the same address listed as their principal place of business with the regulator.

When asked whether or not customers of Golden IT were now managed by Gtelecom, the administrator told CRN part of its investigation was to determine the current status of Golden IT’s customer database, including whether or not customers had been moved to another company.

Golden IT is not currently trading and it had no employees when it entered administration.

Pleash advised creditors during a meeting on 22 March that Golden IT director Zack Baala intended to submit a deed of company arrangement (DOCA) proposal to creditors of the company for their consideration.

Dicker Data, Telstra, Hills Limited and Emersion Software Systems were among the companies named on a creditors list.

The administrator also noted one creditor, Loanworks Technologies, had taken legal action against Golden IT in order to recover a debt, but that proceeding had been stayed as a consequence of the administration, as prescribed by section 440D of the corporations act. Loanworks claimed it was owed $70,000, according to documents filed with ASIC.

“It is the administrator's duty to recover the assets of the company that are available, determine the legitimacy of claims against the company and provide a recommendation to creditors whether the DOCA proposal would provide for a better return to creditors then a liquidation scenario,” the administrator's report read.

Questions put to Gtelecom by CRN were unanswered at the time of publication.