A VideoEzy plan to roll out 10,000 set top boxes to deliver content to Australian homes is today in jeopardy after the company supplying the set top boxes went bust after taking a rumoured $2,000,000 deposit for the boxes from the DVD rental company.
A $4.5 million dollar order for 10,000 set top boxes for VideoEzy is today in jeopardy following the announcement that shares in ASX-listed data communications and software engineering company Mobilesoft have been suspended following the appointment of voluntary administrator Jirsch Sutherland.
Only last Friday, Mobilesoft announced a $3.1 million acquisition of electronic payment software company Zanell, trading as Secure e Solutions. A month ago, the company confirmed a $4.5 million order from VideoEzy for 10,000 home media centre set-top boxes. What is not known is how much money VideEzy had to put down as a deposit with some insiders saying that it could be as much as 50 percent.
“Achievement of this product development milestone is highly significant as it establishes Mobilesoft’s position in the ‘New Media’ space,” said Mobilesoft at the time.
Jirsch Sutherland partners Sule Arnautovic and Roderick Sutherland were yesterday appointed as joint administrators. According to a statement, the appointment was made by the secured creditor, which has a fixed and floating charge over the companies.
“The administrators are continuing to trade the business and service its customers while they assess the financial position,” the statement said.
A spokesperson for VideoEzy was reported on The Australian’s online IT news site as saying that general manager Andrew Gardiner was not aware of Mobilesoft’s predicament and was unwilling to comment.
Mobilesoft says it has been developing data communications products and solutions since 1993 for some of Australia’s largest companies in the finance, banking, utilities, logistics and gaming sectors.