4 Aug 2009

ProvencoCadmus in receivership

6:06 am on 4 August 2009

ProvencoCadmus says its recent merger was not to blame for the company's failure.

The payment technology company is in receivership citing unsustainable debt, sluggish investment markets and a weaker than expected trading performance.

As late as last week, ProvencoCadmus had hoped to secure additional short term funding from banks and shareholders.

Now Michael Stiassny and Brendon Gibson of Korda Mentha have been appointed recievers.

Provenco and Cadmus merged in May last year following overwhelming endorsement from both sets of shareholders.

Chairman Rick Christie, says the merger was necessary but the procedure took too long.

The company has debts of $45 million which, it says, costs $6 million per year in interest payments.