Digislide creditors sack administrator

Creditors voted to replace PPB Advisory partner Tim Clifton with BDO Australia on a show of hands.

The ASX-listed company appointed Mr Clifton on December 20 after talks to extend amounts payable on $500,000 in convertible notes with Sydney-based investor Multi Vendor Support Services (MVSS) broke down and two statutory demands were brought on the company.

But a proxy for MVSS managing director Mal Fraser-Clay yesterday said he had been out-voted by other creditors, led by Digislide chief financial officer Jeff King, to appoint BDO Australia as the new administrator.

Proxy Ian Brookfield said chief executive Luceille Outhred, as a creditor through related parties, had been unhappy about testing the market to gauge the value of the Digislide's assets.

"The reason why she got rid of the appointed administrator was because they said they should start looking to putting assets to market," Mr Brookfield said.

The new administrator, BDO Australia Melbourne-based partner Michael Humphris, was unavailable for comment yesterday.

Many of the 27 angry creditors emerged from the two-hour meeting yesterday unhappy with the board's standards of corporate governance and lack of disclosure.

The Advertiser was not permitted to attend the meeting and Ms Outhred did not make herself available for comment afterwards.

Meanwhile Mr Brookfield said MVSS had sent 70 letters to fellow creditors to gauge interest in forming a class action against Digislide directors, foundation shareholder Martin Place Securities and the Australian Securities Exchange to recover debts.

Digislide shares have been suspended from trading on the ASX since September 30 while the company said it was in talks to raise $20 million through a debt and equity raising with investors.

It managed to extend debt repayments with key creditors MVSS and Martin Place Securities before MVSS made its demands in December.

The company posted an annual loss of $2.41 million in the year to June 30, based on sales revenue of $325,904 - with director-related entities responsible for 70 per cent of sales throughout the year.