However, with operational infrastructure of the subsidiary sold to Queensland-based NetOptions as part of the BI sale, creditors will be hard-pressed to recoup the estimated AU$17 million outstanding from what is left of Powerlan QLD.
A source close to the administrators told ZDNet Australia that early figures place the company's unsecured debts in excess of AU$10 million, with secured debts in the vicinity of AU$7 million.
The administrators are busying themselves assessing proofs of debt and have yet to deliver a verdict on the ongoing viability of the company. Creditors are expected to meet at KPMG offices in Brisbane this Thursday.
Powerlan CEO Theo Baker refused to be drawn on details of Powerlan QLD's descent into voluntary administration, saying it was up to the administrator to comment on the company's outstanding debts. Instead he moved to reassure current creditors of the integrity of the rest of the company.
"Powerlan is undergoing a restructure and divesting all the ancillary businesses not related to software for the finance and operational management sector," Baker said. "There is absolutely no need for creditors to be concerned about any other companies within the group."
In a response to queries made by the ASX in late June, Powerlan restated its goals to sell off two business units in order to renew its focus on the "core businesses" of software provision for the banking and finance, operations support systems, knowledge management, and managed services.
However, institutional investors have not taken kindly to this new direction. The ASX announcement that Powerlan QLD was to be placed into voluntary administration coincided with an announcement that the Commonwealth Bank of Australia ceased to be a substantial shareholder in Powerlan Limited, forcing the company's share price to a new low of 5 cents.
"A lot of institutional investors didn't even know what they were investing in when they bought into IT, all they knew was that the share price was going up," Baker said. "Now we have the opposite effect. In my view the Australian institutional investment community have very little success with coming up with fair values for a company."
While he said he believed the company was undervalued, Baker said an aggressive buyout was unlikely given the state of the market generally, and the fact that 40 percent of the company's shares remain in the hands of management.
"Too low a share price means it is difficult to get access to capital markets, but it doesn't reflect the company's performance," Baker said. "We believe we are on the right track."
