Comindico enters administration

Wholesale ISP Comindico has entered voluntary administration, appointing accountancy firm Ferrier Hodgson to mastermind a sale of its various divisions.

Last night, Comindico issued a press statement confirming there had been a "breakdown in negotiations" with potential equity investors.

It has been reported that networking hardware vendor Cisco forced Comindico to take that step after refusing to fund the ISP any further at a 22 September board meeting.

Comindico said Ferrier Hodgson would try to sell off Comindico's various companies as going concerns. The first creditors' meeting has been scheduled for 28 September at an as-yet unannounced location.
 
"As a result of the immediate, unsolicited level of interest shown from a number of parties, the admininistrators are confident the business can be maintained and sold as a going concern," Comindico said.

A formal sale would be held as soon as possible, Comindico said.

However, postings on Australian broadband forum Whirlpool predicted outages and trouble for resellers as a result of Comindico's failure.

"Customers on Comindico-based ISPs are unlikely to face outages immediately. However, expect to see a shake-up in the industry as resellers batten down the hatches in preparation for conditions new owners may impose," Whirlpool said yesterday.

Neither Comindico nor administrator Ferrier Hodgson had replied to CRN's requests for comment at press time.