Cathro & Partners overseeing liquidation of tech company Metigy

Creditors of the collapsed Australian tech company Metigy have appointed Cathro & Partners as its liquidator, continuing their relationship with the boutique restructuring consultancy.

In July, Metigy left its 75 staff and the technology scene “shell-shocked” when it collapsed owing $32 million to creditors (including around $2.5 million to employees).

The Sydney-based company, which offered an artificial intelligence platform to small business for marketing purposes, had during its eight years of life raised more than $20 million from various investors.

Late July, shortly after the voluntary administration process was confirmed, investigators and creditors hired Cathro & Partners to assess the state of the business, and explore the possibility of its sale.

With no concrete interest for the business and its assets, in August Metigy was placed into administration, with law firm Allens and Cathro & Partners overseeing the process. Their damning report found that the company had been trading insolvent for a “significant period of time”, since at least November 14 last year.

The report also uncovered that Metigy’s sole director used company assets to secure a $7.7 million loan from the firm to buy luxury properties. The director had repaid some of the money, the administrators said, but still owed $4.76 million, plus interest.

Properties owned by the director include a $10.5 million house in Mosman, on Sydney’s lower north shore, and a New South Wales coast property with a pool and tennis court, bought for $7.7 million. But due to falling property prices this year, the administrators believe the assets are now worth less than their original purchase prices.

Both luxury homes have been ‘frozen’ on behalf of the administrators.

The revelations have triggered a formal investigation by corporate regulator ASIC. “We have commenced an investigation into the circumstances of the collapse of Metigy and the matters identified by the administrators in their report,” a spokeswoman said.

Meanwhile, on September 9, Metigy went into liquidation, with Simon Cathro and Andrew Blundell of Cathro & Partners appointed liquidators of the bust group.

Commenting on the project, Simon Cathro said: “We will manage the liquidation process and provide a report to creditors in due course. We will also undertake an investigation into the affairs of the companies.”