A key subsidiary of start-up financier Techpacific.com has appointed liquidators after failing to obtain fresh funds. Internet solutions provider Spike had sought additional working capital from its shareholders, including Techpacific and Australia-listed Spike Networks, at a creditors meeting on July 10, Techpacific said in a stock exchange announcement yesterday. However, Techpacific and Spike Networks refused to put in further capital. As a result, Spike's board appointed two representatives from accountant Ferrier Hodgson as liquidators to wind up the company and its subsidiaries in Japan, Hong Kong and Singapore. Australia accounted for about 70 per cent of Spike's turnover. Ferrier Hodgson was appointed as Spike's administrator about 10 days ago, replacing its directors. Techpacific, which is listed on the Growth Enterprise Market, said the winding-up of Spike would not require further provisions on its books, and ancillary costs stemming from the liquidation would be reflected in its first-half results scheduled for release by August 14. 'Any ensuing ancillary costs are not expected to be material,' it said, adding that Techpacific was solvent and did not expect to incur any contingent obligations such as contractual breaches or guarantees. Spike incurred an operating loss of US$2.71 million in the first quarter this year, after an operating loss of US$10.36 million last year. It had net liabilities of about HK$52.1 million at the end of last year. Spike's first quarter revenues of US$1.34 million contributed 64.4 per cent to Techpacific's revenues of US$2.08 million. Techpacific incurred an operational loss of US$4.99 million in the same quarter.
