Mahesh Sharma | August 12, 2008
DESPITE a banking syndicate's desperation to recoup its investment in failed telco Commander Communications, competitors are not enthusiastic about what will be on offer at the imminent carve-up of the company.
Last week, Commonwealth Bank, Westpac and National Australia Bank called in receivers McGrathNicol to take control of the company's assets and day-to-day operations, after refusing to give Commander an extension on its debt repayments.
Hours earlier, Commander appointed Ferrier Hodgson as voluntary administrators, and partner Max Donnelly said the banks were unlikely to recoup their investment - over $300 million - from the sale of Commander's assets.
"It appears the banks' debt will not be paid from the sale of the assets," said Mr Donnelly, who acts for the administrator.
"The banks will suffer a substantial deficiency and therefore there's no chance of creditors getting a dividend. Hence shareholders will not have any likelihood of a return."
This is a view largely shared by local ICT company heads, who believe the best parts of Commander were sold earlier this year as part of a company restructure, which was triggered by a plunge in its share price last year from $2.75 to 20c, and a management clean-out at the end of the year.
And in an ominous sign, Commander recently failed to complete a planned asset sale and slashed its profit guidance by more than $15 million to about $4 million.
ASG managing director Geoff Lewis said Commander's clients would most likely look to escape their contracts.
Data#3 managing director John Grant said he was interested in speaking to Commander about what was left of its services business.