A provisional liquidator was appointed by the High Court yesterday to Dublin-based e-Exchange, a holding company for trading subsidiaries across the world. It was stated to have liabilities of more than $3 million (€3.53 million) and assets of $125,000. E-Exchange, with its registered office at Upper Mount Street, Dublin, operates a global trading exchange for products, commodities and services.
On the application of Mr John Gleeson SC, for the firm's managing director, Mr Justice McCracken appointed Mr Rory O'Farrell, accountant, as provisional liquidator with power to negotiate and complete a sale of its assets. It was stated an offer had been made.
In an affidavit, Mr Rakesh Gandhi, Rawlings Street, London, said he was managing director and shareholder of e-Exchange, and also a creditor. The firm began to trade in 1998. He was a full-time employee with a salary of $396,000 a year. He had not been paid since midAugust last and the firm owed him $99,000.
The firm's various trading subsidiaries operated Internet exchange sites in which suppliers and buyers could post details of what they offered or required, he said.
About March last, the company began looking for investors. Detailed negotiations took place with several investors but they failed. On September 23rd, the firm's UK administration was placed in administration.
Mr Gandhi, one of two employees, said the firm had ceased to trade and had liabilities of about $3.7 million while the estimated realisable value of its assets was $125,000. The directors had investigated the possibility of selling the firm's businesses and assets. The search for a buyer had been thorough and to date only one offer had been received.
Mr Gandhi said the firm's assets included its shareholding in the subsidiaries, computer equipment and, most significantly, its intellectual property. The value of this was inextricably linked to the Internet sites operated by the subsidiaries.
The company could not maintain the sites and their value was falling rapidly as a result. He was aware Electronic had made an offer which was conditional on the sale having been completed by Tuesday next.
