Ailing dotcom LibertyOne asked to be delisted from the ASX on December 6 after Hong Kong investor group iReality Capital withdrew a $6 million bailout offer. LibertyOne has gone into voluntary administration with Ernst & Young.
LibertyOne executives called an emergency meeting late on the day before it was delisted, in which they decided to halt share trading on the ASX after the board of directors was told iReality had withdrawn a recapitalisation proposal.iReality withdrew a cash rescue plan brokered in October under which iReality paid LibertyOne $2 million of a $6 million cash contribution.
The deal would have injected a further $28 million into the cash-strapped LibertyOne through stock options, media reports said.
Nick Whitlam, LibertyOne chairman, assured shareholders at the time of the deal the arrangement would sustain the company. Shareholders had not approved the deal.
LibertyOne chief executive Marcelle Anderson provided scant details on her future within and potentially outside the company, which has been marred by financial problems since listing on the ASX in 1998 and raising $40 million in capital. She told The Australian she would remain at the helm as long as she was "useful" to the company and was in discussion with the administrator as to LibertyOne's future.