THE creditors are lining up at Bill Express, with the national electronic payment company facing debts of more than $180 million.
ANZ bank, Telstra, Optus and Vodafone are the key creditors of the company, which has earned revenue of $1 billion a year from the business of electronic bill payment and providing call credit for pre-paid mobile phones.
The debt woes of Bill Express come amid claims and counter-claims of suspect deals and related-party transactions at board level that resulted in cash allegedly being siphoned off into private companies and bank accounts not controlled by the listed company.
ANZ has appointed a team led by Ben Steinberg to investigate the financial situation of Bill Express and its holding company, On Q. Both have been suspended from trading since April, with no announcement to shareholders or the market about the financial position of either company.
Mr Steinberg is director of corporate portfolio management at ANZ , the department that deals with problem creditors. In March ANZ appointed his team to look after the bank's interests amid the collapse of Opes Prime.
Craig Crosby, of the administrator PPB, has also been employed to assess the financial situation of Bill Express on behalf of the board, and to assist with an equity and cash injection into the company by a new investor. Unless that deal is successful, Bill Express and On Q face being placed in administration.
The board of Bill Express has established an electronic data room and is seeking an investor to try to salvage the Australian operation, which has more than 14,000 point-of-sale terminals at newsagents and shops.
The chief executive of Bill Express, Ian Christiansen, said he would make an announcement today on a restructuring.
"I expect us to have some very exciting news," he said. "Bill Express has been working with key parties to work through a deal for some weeks and it's at the final stages."
Mr Christiansen denied the company's debt, should it go into administration, was more than $180 million. "I would dispute that figure," he said.
The appointments of Mr Steinberg and PPB have not been disclosed to the ASX.
Two of Australia's best-known businessmen have been caught up in the companies' fall.
Gerry Harvey, the founder of Harvey Norman, was a cornerstone investor in On Q, having paid $6.5 million for 39.1 million shares. At its peak share price of $1.17, Mr Harvey's 9.85 per cent holding was worth $45.7 million. On Q last traded at 7.2c a share.
The trucking magnate Lindsay Fox took an 8.4 per cent interest in Bill Express last year, when the company was trading at more than 20c a share. Linfox Share Investments owns 6.2 million shares in Bill Express, which last traded at 3.8c a share.
Neither Mr Harvey nor Mr Fox was involved in the day-to-day running of Bill Express or On Q. If the companies are placed in administration, both men's investments will be worthless.
One potential investor who has access to the Bill Express data room described some of the financial information contained within as "a work of fiction".
Another said that his investigation, and talks with big creditors, had revealed a much bleaker picture for Bill Express.
"There's a credit note for $11.5 million and the ANZ, the financier, is owed $59 million," the potential investor said.
"It's hard to determine just how much the telcos are owed because some is still within the 30-day, 60-day or 120-day terms. But if Bill Express were to fall over tomorrow, and that debt were to crystallise, then Telstra is owed at least $30 million, Optus is at least $40 million, and Vodafone between $20 million and $25 million."
In addition, Bill Express owes $15.7 million to On Q and including other creditors and lease arrangements has a debt of $180 million. The trucking magnate Lindsay Fox took an 8.4 per cent interest in Bill Express last year, when the company was trading at more than 20c a share. Linfox Share Investments owns 6.2 million shares in Bill Express, which last traded at 3.8c a share.
Neither Mr Harvey nor Mr Fox was involved in the day-to-day running of Bill Express or On Q. If the companies are placed in administration, both men's investments will be worthless.
One potential investor who has access to the Bill Express data room described some of the financial information contained within as "a work of fiction".
Another said that his investigation, and talks with big creditors, had revealed a much bleaker picture for Bill Express.
"There's a credit note for $11.5 million and the ANZ, the financier, is owed $59 million," the potential investor said.
"It's hard to determine just how much the telcos are owed because some is still within the 30-day, 60-day or 120-day terms. But if Bill Express were to fall over tomorrow, and that debt were to crystallise, then Telstra is owed at least $30 million, Optus is at least $40 million, and Vodafone between $20 million and $25 million."
In addition, Bill Express owes $15.7 million to On Q and including other creditors and lease arrangements has a debt of $180 million.
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