Examiner confirmed for mobile phone data services company

THE High Court yesterday confirmed the appointment of an examiner to a company involved in providing mobile phone data services around the world.

MobileAware Ltd, formerly of City West Business Campus, and now in the Digital Hub in Dublin, sought the protection of the court last month after it ran into financial difficulties over the previous nine months.

In its petition to the High Court seeking to have an examiner appointed rather than have the business wound up, the company says an examinership would be better for creditors. The creditors include the Revenue Commissioners.

The company, which has been in existence since 1999, sells software products for European mobile phone operators to provide WAP (Wireless Application Protocol) services to their customers.

Despite raising investment of €21 million over the years and having a turnover of €7m per annum, it continued to incur losses amounting to nearly €4m over the last 12 months.

In June last year, severe cash flow difficulties meant it could not meet obligations to the Revenue Commissioners who sent in the Revenue Sheriff demanding payment for amounts owed.

It closed its offices in China and Melbourne, cut staff in Ireland and relocated to a smaller low cost facility (in the Digital Hub). It was proposing cutting its US staff from 22 to 12, although this was a profitable area of the business.

The High Court last month appointed Tom Kavanagh of Kavangh Fennell as interim examiner, who is putting in place a survival plan which should involve fresh investment.

Yesterday, Mr Justice Frank Clarke was told that most of the proposals to address the company’s difficulties had been implemented and it applied to have Mr Kavanagh confirmed as examiner.

Mr Justice Clarke said he would do so saying it seemed to him the company had a reasonable prospect of survival.