Feeds

Hack-smacked Alphadex bought by iRack Ltd ... or is that Networks Ltd?

Brit colo firm bailed out by new firm with connections to old

Build a business case: developing custom apps

Exclusive Brit data hosting biz Alphadex has been rescued from administration and bought up by a new firm, though there seems to be some confusion over just which firm is its white knight.

Alphadex, which went into administration after British Gas issued a winding up petition for unpaid bills last month, said in an announcement on its website on 24 April that it had been acquired – by iRack Networks Ltd.

But according to sources and documents seen by The Reg, administrator Cowgill Holloway told creditors and customers that the company had been bought by iRack Ltd, not iRack Networks Ltd.

After Alphadex was alerted to the discrepancy by The Reg, the announcement on its website changed to read iRack Ltd, and the company number has also been removed. However, you can see the original statement in a screen grab below.

Click to embiggen

According to Companies House filings, Alphadex's original director was Jabir Abadi and the firm was incorporated at an address in Preston in Lancashire, UK. Abadi stopped being director of the firm in October 2012 and the company's address was changed to one in Manchester's Media City in February 2013. The address was changed back to the one in Preston in April this year, on the same day the acquisition was announced.

Up until the end of last week, iRack Networks Ltd was directed by both Jabir Abadi and Dale Eric John O'Brien, and was incorporated at the Preston address. Following inquiries by The Reg last week, these details have changed. Abadi has left his directorship at the company and the registered office has been changed from the Preston address to an address on Victoria Street in Manchester.

Meanwhile, iRack Ltd, the new owner of Alphadex according to the updated statement and the administrator, is registered at the same Victoria Street address and is directed by the same Dale Eric John O'Brien.

A third company, Blue Capital, was the qualifying floating charge holder for Alphadex – in other words, the creditor that holds the security on more intangible elements of the business such as debts, stocks and small pieces of furniture (anything that cannot be a fixed charge).

The qualifying floating charge holder can appoint administrators for a firm in trouble; thus Blue Capital put Cowgill Holloway on the case for Alphadex. According to Companies House, Blue Capital is also incorporated at the Preston address and its director is Jabir Abadi.

In a press release, administrator Cowgill Holloway said that Alphadex had run into cash flow problems after losing contracts following cyber attacks in late 2013 and earlier this year, as well as reaching the end of a major client's contract in February last year. Cowgill said that new owner iRack was intending to "invest heavily" in updating software, hardware, network and infrastructure at the colocation firm to ensure it could withstand a hack in the future.

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
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
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.