Comindico receivers pledge business as usual

Receivers for wholesale ISP Comindico have announced that the company will continue to operate as usual during the sale process.

Late yesterday, Murray Smith and Tony McGrath from McGrathNicol+Partners, who are receivers and managers for Comindico, issued a statement announcing that they had reached agreement with the wholesale ISP's key suppliers for continuity of supply.

"Initial discussions are underway with a number of interested parties in
relation to the sale of the business as a going concern," according to the statement. "The receivers will formally commence advertising on Wednesday, 29 September for expressions of interest in acquiring the business as a going concern."

Smith described the level of interest from potential purchasers as "significant".

According to the statement, McGrathNicol+Partners were appointed as receivers and managers on 23 September, by the facility agent acting for Cisco Systems Capital (Australia) Pty Limited, which was exercising powers available as the secured creditor.

"The appointment of receivers follows on from the decision of the board of Comindico to appoint voluntary administrators to the company the previous day," it stated.

Last Friday CRN revealed that Comindico had announced there had been a "breakdown in negotiations" with potential equity investors.