Melbourne tech company Alpha Technologies collapses into administration

A small Melbourne technology company that makes temperature sensors and probes has been placed into administration after being unable to repay two of its lenders.

The directors of Alpha Technologies, which is listed on the Australian Securities Exchange, were yesterday forced to place the company in the hands of administrators Ken Sellers and Mathew Muldoon of the Melbourne office of BRI Ferrier.

The company, which had a market capitalisation of $4.3 million before it collapsed, has been desperately trying to fend off claims from lenders in recent weeks.

On 26 August, Alpha revealed that five days earlier it had received a demand from one of its lenders, E-Fulfilment.com. The letter, which arrived at the very precise time of 5.06pm, demanded Alpha Technologies repay a convertible note facility and an unsecured loan.

“The company sought legal advice in relation to this demand for repayment and offered to fully satisfy by the date demanded what the company considered was its obligations through payment of all presently due and payable liabilities with this financier,” the company dais in a statement.

But E-Fulfillment.com knocked back the offer and the two parties are now in dispute.

To make matters worse, on 1 September Alpha was hit with another letter of demand from lender Panache Global Holdings.

Unable to pay either lender back, Alpha’s directors were left with no choice but to call in the administrators.

Alpha reported a loss of $12.8 million for 2008-09, dragged down by over $16 million worth of writedowns. The company had sold its loss-making European subsidiary early in the year for an undisclosed price.

However, revenues from continuing operations grew 19.6% to of $14.6 million and the company’s factory in Xiamen in China also starting to produce profits.

Administrators Ken Sellers and Mathew Muldoon were unavailable for comment prior to publication.