Feeds

Red ink sinks green data centre

Update: Next stop, liquidation

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

An unexpected withdrawal of offshore investment in Melbourne’s multi-million dollar "green" data centre facility ADX1, has plunged the project into administration.

Insolvency specialists Sellers Muldoon Benton have been appointed administrators on to the start-up data centre, which ceased operations in February.

The company, which was launched last October, had secured 6,000 metres2 of space in Port Melbourne and was promising carbon friendly services including advanced managed cloud solutions. It is understood the company had peering agreements with Pipe Networks, and was using VMWare virtualisation technology.

ADX1 was backed by a group of Singapore and Hong Kong based backers, including Singapore based lawyer Randhir Ram Chandra and co-founder and CEO Alan Lam, originally from Hong Kong.

According to sources close to the company, management was advised in mid-January that investors were no longer putting money into the venture, just four months after its launch. The news came as a shock to the Australian team of 17 staff, many highly regarded in the industry, including general manager Stephen Brown.

Sources claim that CEO Lam did not reappear after Christmas and did not address staff about the fate of the company. Staff members are still waiting for news on their entitlements and outstanding pay, and have not been paid since Christmas.

“We, including our GM, have all been left hanging. We have yet to receive any direct communication from our CEO or directors,” one ex-staff member said.

The reason behind the collapse is unclear as according to staff, pre-orders and demand had been high and the project had been moving forward to plan operationally.

An application to appoint a liquidator was due to be heard in the Supreme Court of Victoria on 9 March but it is understood that this date has been cancelled pending an announcement from the administrators this week at a scheduled creditors meeting in Melbourne.

Update:The administrators have moved quickly: late yesterday (Sydney time) they announced that ADX1 was being put into liquidation. A creditors' meeting will be held within weeks. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.