An Australian technology company that had won big contracts with Formula 1 and global soccer body FIFA has collapsed with $13 million in debt after facing criticism for its lavish spending.
Melbourne-based E-Mersion Media (Aust) Pty Ltd has entered administration and resigned remaining staff.
The company, which also had an office in the United Kingdom, was dedicated to the digitization of printed magazines, which led to it signing contracts to produce publications for FIFA and F1.
Its parent company, E-Mersion Media Pty Ltd, is still in operation, but the State Revenue Commissioner began closing proceedings against E-Mersion Media (Aust) Pty Ltd in March. news.com.au reported.
Mathew Gollant of restructuring firm CJG Advisory has been appointed administrator of the company.
Last year, half of its then 16 employees, including some senior managers, left E-Mersion Media as the company faced legal disputes and criticism over some of its spending.
Australian technology company E-Mersion Media (Aust) Pty Ltd, which had won big contracts with Formula 1 (pictured) and global football body FIFA, has collapsed with a debt of $13 million.
John Iliopoulos (pictured), the parent company’s sole director, said: “Nobody has more to lose in this than the parent company, the shareholders, which obviously includes my family interest.”
This included $1 million spent on travel expenses over three years, part of which was $100,000 to rent a luxury villa in Doha, Qatar’s capital, for a year.
Creditors say they are owed more than $13 million, but some of the alleged debts are in dispute.
Creditors include the Australian Taxation Office, which is owed $1.1 million, the company’s accountants, who are owed $23,000, and former employees who claim to own sums ranging from $2,000. and $100,000.
However, the largest creditor by far is the parent company, which claimed it was owed $11.4 million.
Each of the claimed debts was recognized at just $1 each at an initial meeting of creditors, which meant they could attend but would have to provide evidence of what they said they were owed.
The company spent $1 million on travel expenses over three years, part of which was $100,000 to rent a luxury villa in Doha, the capital of Qatar (pictured) for a year.
John Iliopoulos, the company’s sole director, said: “Nobody has more to lose in this than the parent company, the shareholders, which obviously includes my family interest.”
“I have fought and will continue fighting to try to save [the company]’ he told news.com.au.
Iliopoulos previously said that high travel expenses are “just one part of our business.”
‘We are an Australian company, all our contracts are overseas.
‘It would have been much more expensive to book individual hotels for a month. It was cheaper to book (the villa) during the year.
“We continue to negotiate agreements in Qatar, I don’t think it was a waste of money.”
WhatsNew2Day Australia has contacted Iliopoulos and Gollant for comment.
