Terralink, the state-owned enterprise that collapsed in January, has been sold to a consortium.
Receiver Gary Traveller from PricewaterhouseCoopers said yesterday that the offer from New Zealand Aerial Mapping and Animation Research (ARL) was unconditional.
ARL managing director Ian Taylor said new contracts would be offered to all Terralink staff.
The computer-mapping enterprise went into receivership after a large contract with computer services company EDS cost more and took longer than expected.
Mr Traveller said that receivers had planned to let all interested bidders go through due diligence.
"However, the consortium indicated at an early stage that they would be prepared to pay a premium for Terralink as long as the other bidders did not go through the ... process, because of the commercial sensitivity of the work Terralink is doing."
Allowing other companies access to Terralink's work would have destroyed much of the company's value to the consortium, he said.
Its offer was the best that was likely to have been received and compared favourably with indicative bids.
The price was not disclosed.
Sale proceeds would be used for final receivership costs, including settling preferential creditor claims, mainly from Inland Revenue, and repaying a debenture the Government held over Terralink.
"Any money left over will be divided up among unsecured creditors - which includes staff who are owed redundancy entitlements," Mr Traveller said.
Sixty-seven Terralink staff on contract with EDS were sacked in January, some saying they had not been paid since before Christmas.
Sixteen were rehired on short-term contracts.
A group of the former workers has talked of taking group action against the failed company, alleging unjustified dismissal.
Dunedin-based 3D graphics company ARL is one of two companies behind the Virtual Spectator technology, which provided animated coverage of the America's Cup campaign.
Mr Taylor said the three companies were complementary and would build on a combined client base that included local and international organisations.
The new company would be known as Terralink International from June 1.
Mr Traveller said Terralink had 188 staff.
He would not comment on the threat of legal action beyond saying that receivers were in mediation with the 10 former staff who had made the claim of unfair dismissal.
- NZPA
Consortium has best offer for Terralink
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