ID Data files for administration
16 October 2008 | 6435 views | 0
UK-based ID Data Group says its core unit - ID Data Limited - has filed for administration in a last-ditch attempt to secure a sale of the business.
The vendor said in August that it was seeking funds from investors at the same time as pursuing the possible sale of ID Data Ltd in order to meet short term working capital and debt funding requirements.
ID Data Ltd has now filed at the High Court of Justice notification of its intention to appoint an administrator to protect it from creditors and the group is stepping up efforts to secure a sale of the unit.
"Protection from creditors provided by the notification and potentially by the appointment of an administrator will enhance the possibility of an orderly disposal process reaching a successful conclusion," says the company in a statement.
Peter Cox, group CEO and chairman, ID Data and CEO of ID Data Limited, says the action "is intended to protect the present and future business of ID Data Limited, and to ensure that customers are fully served".
The vendor says a number of international firms have expressed interest in the division, as well as in its Cardbase subsidiary. Earlier this year the group managed to sell its credEcard pre-paid card unit to Contis Group for £2.2 million.
Trading in the company's shares have been suspended since 25 September after the vendor failed to complete the audit of its accounts for the year ended 31 March 2008 in time.