ventracor administrators hold information sess

http://www.abc.net.au/lateline/business/items/200904/s2537731.htm


Transcript
ALI MOORE, PRESENTER: Ever since the management of heart device maker Ventracor pulled the plug, shareholders have been keen to keep the company alive. The administrators Ferrier Hodgson held a rare information session today to provide the company's large retail investor base with an update. Desley Coleman reports.

DESLEY COLEMAN, REPORTER: In the field of medical innovation, Ventracor was a great local success story, with its heart device helping extend the life of 400 patients around the world. However, as a business, it's now struggling to survive, with the company's shareholders hoping at least some of their investment can be saved.

PAUL GELLATLY, INVESTOR: $265,000 and I've lost my house over this at the moment. So I'm pretty angry.

JOHN PAIS, INVESTOR: I've been with the company about three to four years now, I think. You know, I've always invested in terms of the share purchase plan. I've probably got, I think, $150,000 sitting in this company.

PAUL DONOHUE, INVESTOR: My own father has heart disease, and sort of there's a personal connection there. We just think it's the right thing to do to invest in companies that are doing something that is socially and morally good.

DESLEY COLEMAN: But not even social and moral good could attract a serious injection of much-needed capital. On 19 March, Ventracor's board-appointed administrators Ferrier Hodgson.

Today, they took the unusual step of providing shareholders with an informal briefing session.

STEVE SHERMAN, PARTNER, FERRIER HODGSON: One we had to address was, one, their interest in this company, to give them some facts and figures. And secondly, to try and - if they have an interest in saving the company or participating in that process to guide them in some way as to how that should be framed.

DESLEY COLEMAN: Shareholders have engaged lawyers Slater & Gordon on some disclosure concerns and are seeking advice on a possible company deed of arrangement which could keep the business going in a different form. That option will need to be presented to administrators before 20 April.

PAUL GELLATLY: If we were to put a plan to the administrator from the shareholders, we're prepared to put some more money in. We will keep all of those employees - we'll keep them in a job.

STEVE SHERMAN: If you were to paste a worst case scenario, it is a bleak assessment. But, we hopefully won't get any of the worst case scenario. We'll actively pursue options.

DESLEY COLEMAN: While Ventracor's product has approval in Australia and Europe, it struggled to get FDA approval in the United States. That delay has drained company funds and starved it of a new income stream. However, the administrators say there is a chance Ventracor can survive.

STEVE SHERMAN: We've had a number of ongoing discussions with parties who've expressed an interest before, to the company before we were involved as the administrators. They're active, and we'll just see how that plays out over the next seven to 10 days.

DESLEY COLEMAN: Michael Spooner was Ventracor's chief executive from 2000 to 2003. Shareholders have asked Mr Spooner to help rescue Ventracor from a fire sale.

MICHAEL SPOONER, FORMER MD, VENTRACOR 2000-3: Clearly I've had a lot of passion myself around building this company. It went from pretty much ground zero to the highest performing ASX 200 company on the stock market. You don't build that. A lot of people who are still there, are folks that I employed. You know, you don't just walk away from that sort of organisation without maintaining some degree of passion. I do believe in it. I believe in the people and I believe in the technology and I think it's worthwhile saving.

DESLEY COLEMAN: The second creditors meeting will be held on 30 April, where the administrators will decide on the life or sale of Ventracor the company.