LibertyOne's administrator has recommended liquidating the Australian Internet company which is managed by Hong Kong shareholder iReality Group. A slump in global valuations of Net firms, the failure of LibertyOne's growth strategies and excessive funding commitments to joint ventures led the administrator to recommend liquidation, according to a LibertyOne statement. The statement said LibertyOne directors affiliated to iReality estimated the Australian firm had operating and investment losses of about A$20 million (HK$82.4 million). 'However, these claims are yet to be verified and this figure may be ultimately reduced,' said the administrator John Gibbons. Another of LibertyOne's directors estimated the figure to be about A$3 million. Payments to creditors are unlikely to exceed five Australian cents for every dollar owed, according to preliminary estimates by the administrator. However, there was a 'reasonable prospect' that all employees entitlements could be covered. The administrator was appointed in December after iReality and other LibertyOne directors disputed the reasons for the failure to recapitalise the Australian company. LibertyOne claimed in a December statement that iReality reneged on a rescue package and hence the firm was forced to appoint an administrator. IReality disputed that announcement and said their position was 'grossly misrepresented'. IReality had agreed to acquire LibertyOne shares for A$6 million and options in the company which could provide a further A$28 million. In October, the first tranche of A$2.3 million was paid to LibertyOne and iReality took full management control. A financial and operational review of LibertyOne conducted by the new management showed the company would be unable to pay its debts even with the capital injection. Despite the findings, iReality claimed it was going to honour its obligations to inject funds into LibertyOne. IReality bought into LibertyOne after the Australian company said in October it did not have enough working capital. The main attraction to iReality of buying into LibertyOne was its Web integration services company Zivo.