Bankrupt linked to new venture

By ADAM GIFFORD


A company linked to bankrupt technology entrepreneur Evan Read is about to launch wireless internet and phone services in Whangarei, despite losing much of its equipment in a mysterious burglary.

Chief operations officer Kurt Henderson said Whangarei CAN would provide access to Kamo residents using the 902.11b standard, which uses unlicensed spectrum in the 2.4 GHz (gigahertz) band.

It intended to charge $60 a month for data and phone, which would include handsets.

Henderson said the company was doing final tests of its data service, and would test its voice over internet capability once customers were online.

"We want to make sure the equipment is going before we start taking money off people," he said. "We are looking at turning 200 people on in the next couple of weeks."

The company has antennas installed on Kamo Primary School and Kamo High School.

The company's website says it has a wholesale agreement with TelstraClear, which will allow it to offer "exceptional discounts on tolls and other services".

Henderson said he pushed to start the service after seeing a demonstration of equipment assembled for a previous Read venture, Freedom Vnet New Zealand. That venture dissolved in acrimony in 2002 amid claims by staff and contractors that they hadn't been paid.

Read was declared bankrupt in October that year.

According to the liquidator's report, Freedom Vnet directors said the company failed because it was unable to attract enough revenue.

Asset sales and a GST refund generated $160,000, but once staff were paid and liquidation costs taken out there was nothing left for unsecured creditors whose claims totalled $257,850, including $39,000 to TelstraClear.

An associated company, Freedom Vnet Group, continued trading and in January changed its name to Freedom CAN Group.

Henderson said Whangarei CAN staff were working on a contract basis, and no one had yet been paid.

A former staff member was arrested in connection with the June break-in of the company's Kamo premises, and will go to trial in November. Henderson said equipment taken had to be replaced.

While CAN stands for community access network, Companies Office records show Whangarei CAN started as a wholly owned subsidiary of The Wayby Telephone Company. The majority of Wayby shares are held by Before & After, whose shares are held by trustees in the Read Family Trust - Evan Read, Susan Read and Donna McRae.

In February the number of Whangarei CAN shares increased from 100 to 100,000, but there is no indication who holds the increased shareholding.

Henderson said Whangarei CAN was the first of a national network of regional service companies planned by Freedom CAN.

Freedom CAN chief executive Dave Cronin said Freedom Vnet, which he supplied, tried to do too much too soon.

"The technology has moved ahead. What we couldn't achieve back then was voice."

He said the company "has the smarts to allow to more than normal 802.11b," but refused to identify the technology or equipment supplier involved.

Earlier Evan Read ventures were also marked by such secrecy.