LibertyOne calls it quits

LibertyOne has appointed John Gibbons of Ernst and Young as voluntary administrator after making an announcement to the Australian Stock Exchange that Hong-Kong based iReality group had reconsidered its financial rescue package for the struggling Internet firm.

Shares in LibertyOne were suspended from trading after the statement claimed iReality's representatives on the LibertyOne board decided to discontinue its financing of the company. This leaves the group without the necessary cashflow to continue operations.

The iReality Group issued a response late Thursday afternoon suggesting the LibertyOne statement had "grossly misrepresented iReality's position", and it is demanding a correction.

The Group claims at no time did it ever suggest it was not going to fulfill its promised financial rescue package. According to iReality's statement, it had merely presented the LibertyOne board with a dim assessment of their financial position at a board meeting on Wednesday afternoon.

The iReality statement also suggests the its representatives on the LibertyOne board did not vote in the decision to appoint an administrator.

"We regret the decision that has been made by the board of LibertyOne, but agree with their assessment of the company's financial insolvency position," the company said in a statement. "Given our involvement, we are disappointed by the outcome."

The fate of Web development company Zivo, one of the remaining subsidiaries of iReality, has been left hanging in the balance as a result.

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