Computronics comeback

26 Jul, 2007 07:00 PM

PERTH electronics manufacturer Computronics may be down for the count but like Rocky Balboa, the fight Œaint over.

The fight, of course, has been going on since last December when trading in Computronics on the Australian Stock Exchange was suspended after the company announced it had gone into voluntary receivership.

Company founder and director Ole Hansen revealed he had hit the canvas in the past 12 months, pummelled by wrong management decisions, computer hardware failures, software glitches, drought and cashflow problems.

Last week managing director David Sharp unexpectedly resigned, citing a desire to take a new direction.

And with a $2.6 million debt as a king hit, you would think it was all over. Time to throw the towel into the ring.

But Rocky came back.

And Ole believes Computronics can do the same.

Creditors also believe there¹s life in the company, agreeing last week to a Holding Deed of Company Arrangement, under which the deed administrators would call for and assess proposals for the reconstruction of Computronics and then present a proposal to creditors for approval.

What it all means it that the offer to buy Computronics as a going concern is back on the table.

The decision was made after a company interested in buying Computronics for $2m missed the deadline.

But they are reported to be looking for a new financier and in the meantime new prospective buyers have appeared on the horizon.

³We¹re not going into liquidation,² Ole said, as if he was waving trainers to hold onto the towel.

³There¹s too much value in the company; we¹ve got a serious future.

³We just need a fresh injection of capital and there will be a buyer because the opportunities for profit are real.

³Under administration, we¹ve been cash flow positive in a very difficult year.

³We¹ve still got 50 staff including seven in research and development and we¹ve had fantastic support from our customers and OEMs (original equipment manufacturers).

³Our service and back-up is continuing and as far as we¹re concerned it¹s business as usual.

³We¹re doing profitable business in Brazil and Ukraine and we¹re focused on more world markets.²


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