Creditor owes 100,000 euros and is looking for insolvency administrators for tech startup Altada

A creditor of a tech company has applied to the High Court to appoint an interim liquidator for the ailing company.

The creditor, Datech Ltd, wants the provisional liquidator to be appointed for Cork-based Altada Technology Solutions Ltd, a data management and artificial intelligence company run by husband and wife team Allan Beechinor and Niamh Parker.

The motion was adjourned yesterday by Justice Brian O’Moore, who said he wanted Altada to be notified first and the case to resume next week.

Last month, Altada was appointed a liquidator on behalf of a number of investors who recently provided approximately €500,000 in financing.

The bankruptcy trustee recently put the business up for sale.

In 2020, Datech received a €100,000 order from Altada from a US businessman.

Last March, those loans defaulted and Datech claims an interim receiver is needed to protect the interests of “senior” creditors like Datech.

In a petition for the appointment, Datech CEO Darrell Penny said he believes Altada is insolvent and that the recent investor funding represents the “creation of security for the benefit of apparent creditors.”

The appointment of the bankruptcy trustee last month in connection with the recent financing could lead to a situation where “younger creditors are unduly given priority over other older and pre-existing creditors,” he said.

The petition was presented to Mr Justice O’Moore on a unilateral basis by Jarlath Ryan BL for Datech.

The attorney said his client was concerned the company would be sold and no assets would be left for a winding up.

The judge said he was unwilling to appoint an interim liquidator at this time and was directing the process to be served on Altada.

He also ordered that the receiver and other creditors, including receipts, be notified.

He does not want to downplay the serious concerns expressed by Datech and he does not object to the appointment of an insolvency administrator. However, due to the “extreme nature” of a request made by someone other than Altada itself, he was aware of the fact that the company should be given the opportunity to comply.

In November, a trustee from accounting firm Grant Thornton was appointed following a series of financial setbacks and funding shortages for Cork-based AI startup Altada.

That was after the company laid off US employees and furloughed Irish staff in August as it sought bridge financing to “stabilize” the company amid financial troubles.

At the time, the company blamed “unforeseen market conditions” for a delay in a planned Series A funding round that the founders had hoped would raise between €50 million and €100 million.

She had described her funding issues as a “temporary situation” and promised “to bring our entire team back within six weeks.”

Last year, Altada raised €11.5 million from venture capital firms Elkstone and Rocktop Partners, with Enterprise Ireland also making a contribution.

It employs over 70 people in offices across Europe and the US.

https://www.independent.ie/business/creditor-owed-100000-seeks-liquidator-for-tech-startup-altada-42209206.html Creditor owes 100,000 euros and is looking for insolvency administrators for tech startup Altada

Fry Electronics Team

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