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Commander assets split in two

Mahesh Sharma | August 20, 2008

RECEIVERS will sell the remaining assets of Commander Communications as two separate businesses, and attempt to complete the process in the next three months.

McGrathNicol was appointed Commander's receiver several weeks ago, after the telco was unable to pay back over $300 million debt, and since then more than 60 parties have expressed an interest in the remaining assets.

The assets include Commander's IT services business, which has major government and enterprise clients such as the federal Department of Finance and Deregulation; and Commander's telecommunications business, which supports the telephone and network functions of about 30,000 small and medium business customers and includes Commander's franchise network.

McGrathNicol will call for formal expressions of interest later this week, and shortlist up to four parties for both businesses over the next month.

It hopes to have the process completed over the next 10 to 12 weeks.

Administrators say the sale of Commander's assets will not cover the creditors' debts, and unsecured creditors will probably be left out of pocket.

The Australian recently reported that Commander did not respond to expressions of interest from several companies during an asset sell-off earlier this year.

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