Feeds

Red ink sinks green data centre

Update: Next stop, liquidation

  • alert
  • submit to reddit

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.