Feeds

Red ink sinks green data centre

Update: Next stop, liquidation

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.