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Outsourcery confirmed today that it will appoint administrators from Ernst & Young in order to complete the sale of [what is left of] the business to GCI Network Solutions.
“Agreement has been reached to sell substantially the entire business and assets of the Company's trading subsidiary Outsourcery Hosting Limited to GCI Network Solutions Limited,” the firm told the City in a trading update.
“In order to complete the sale, it will be necessary to appoint Administrators, and the Board of Outsourcery has resolved to appoint partners from EY as Administrators for this purpose. The appointment is expected to be made today, and the sale is expected to complete shortly thereafter.”
Shares in Outsourcery were suspended earlier this month after the firm recieved a number of offers for its assets. At the time, Outsourcery warned that proceeds from the sale of assets would probably leave ‘no or limited value’ for equity shareholders.
In April, Outsourcery agreed to a conditional drawdown working capital facility from mobile giant, turned bank, Vodafone. The cash injection provided Outsourcery with the working cash needed to keep ticking over while it realised its assets. This was the second loan from Vodafone, with the network provider now having injected somewhere in the region of £8m into the doomed company.
Former Dragon’s Den star and co-founder of Outsourcery Piers Linney is apparently now trying to outsource some of the blame for the downfall of his creation.
According to an article in The Times, Linney sent a ‘sharply worded’ letter to Vittorio Colao, chief executive of Vodafone, complaining that the mobile network was responsible for the destruction of his cloud computing company.