A Sydney-based technology company chaired by former Liberal party leader John Hewson has been placed in administration.
Pisces Group, which specialises in business transaction platforms, has become one of the biggest suppliers of support systems to the mortgage broking sector through its subsidiary, Pisces Communication.
While the parent group Pisces Group is in administration, administrator Robert Moodie, of Rodgers Reidy Chartered Accountants says the company’s four subsidiaries (including Pisces Communication) are continuing to trade normally.
“Major customers of Pisces Group Limited who have been advised of the appointment [of administrators] have expressed their support to the group’s on-going operations,” Moodie said in a statement.
Moodie says he will be working with the Pisces board and senior management over the next month “with a view to restructuring its operations and debt”.
“It is anticipated that the company will offer a formal proposal to its creditors at the forthcoming meeting of major creditors which will be held in four to five weeks time.”
Pisces Group managing director Jega Rajan did not return calls at the time of publication.
According to its latest annual accounts, Pisces Group made a $13.5 million loss in 2007-8 after posting a $934,000 profit the previous year
Hewson was appointed as chairman of Pisces Group in April 2008. At the time, Rajan praised Hewson’s experience across the corporate world, government and media.
“The Pisces Group approached John several months ago, and what impressed directors and senior management was how he took his time to fully understand our business model and the market space in which we operate.”
Hewson was formerly chairman of financial services company Elderslide Finance, which collapsed in July last year with debts of $140 million one month after Hewson resigned from the board.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
