Feeds

Red ink sinks green data centre

Update: Next stop, liquidation

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.