Liquidator for IT services and software company, Beacon IT, is weighing up legal action against the failed business to recoup property and compensation for outstanding creditors.
Administrator, Manfred Holzmann of Holzmann Associates, was called into the Sydney-based organisation in December and immediately flagged plans for an urgent asset sale. On January 25, creditors voted the residual services business and trading companies into liquidation.
Following the successful sale of the Beacon Information Delivery Systems software arm to an undisclosed buyer, Holzmann told ARN it was working on winding up the company to realise assets and investigate financial affairs, as well as determined while it failed.
He confirmed the liquidator was likely to launch legal action against Beacon’s directors under section 5.7B of the Corporations Act 2001 to recover property and compensation for the benefit of creditors of an insolvent company.
“In the next six months, we’ll decide which way to go… but it is likely we will launch legal action,” Holzmann said.
Beacon’s creditors’ bill runs into several hundreds of thousands of dollars, as do staff entitlements. Some employees should be able to claim outstanding money through the Government’s GEERs program, but Holzmann warned several highly-paid individuals were at risk of being above the earnings threshold.
Holzmann declined to officially comment on the reasons behind Beacon’s demise, but highlighted large overheads and substantial investments in staff and software development as major attributes.
Beacon’s Software Innovations subsidiary was focused on developing budgeting and performance systems, while its services arm maintained relationships with corporate, government and non-profit organisations.
Follow ARN on Twitter: Watch ARNnet
