Queue forms for failed ISP

By ADAM GIFFORD

The liquidator of collapsed internet service provider Asia Online New Zealand hopes to conclude a sale as early as Monday.

The loss-making ISP, which was known as the Internet Company of New Zealand before it was bought by Hong Kong-based Asia Online in 1999, was put into liquidation by directors on Thursday when United States and Japanese investors pulled the plug on money for the Asia Online group.

Several internet providers the Business Herald contacted yesterday said they were interested in parts or all of the company.

Liquidator Kerryn Downey, from KPMG, said several parties had expressed interest, and their plans would be discussed and negotiated during the weekend.

Mr Downey said assets for sale included the business, its networks, subscriber base and intellectual property.

Asia Online New Zealand had fewer than 10,000 subscribers, but most of its revenue came from corporate accounts.

He said staff had been assuring customers that service would be maintained.

"We've had a busy day with customers coming in and out."

Jeremy Fleming, general manager of Carter Holt Harvey IT services subsidiary Oxygen, said his company was sticking with Asia Online for now for supply of international remote access services.

Asia Online lost some customers, including Wilson & Horton, after controversy over alleged denial of service attacks in May which disrupted customers' internet access.

Across the Tasman, internet service provider Ozemail has struck a deal to buy the Australian subscriber base of Asia Online, which appointed KPMG as an administrator on Wednesday.

A Sydney Morning Herald report said Ozemail had paid a fee for Asia Online's 30,000 customers but had not bought any of its assets.