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The assets of failed software company Argent Networks have been divided up in a deal that sees one of the company's core products back in the hands of entrepreneur Chris Jones, who critics blame for Argent's demise.
In receivership since early February, Argent has been broken up and sold off in chunks in an attempt to recover the investments of creditors who include employees, venture capital companies, high-profile private investors and the Government which put money into Argent through its Venture Investment Fund scheme.
Canadian tech firm Redknee has picked up the Australian and US operations of Argent after an initial deal valued at $4 million was rejected by Argent's shareholders.
TelstraClear has bought Argent's calling card platform after previously outsourcing that business to Argent, while Mobilis Networks, the new business of Argent founder Jones, picks up the company's Eclipse billing software platform through the purchase of Argent's New Zealand arm.
Mobilis will also be responsible for collecting $1.4 million in debts left by Argent customers as part of an agreement with receiver McGrath Nicol which will be reviewed every three months.
While accountants pick over the bones of Argent, which was formed in 2001 out of the ashes of Jones's failed ASX-listed company Telemedia, debate has flared over who was responsible for Argent's collapse.
Argent director Jenny Morel, who backed Jones through her No 8 Ventures investment firm in 2001 and, along with TMT Ventures and the Government, invested a further $8 million in Argent in 2004, levels the blame squarely at Jones, who left Argent in August 2006. He was subsequently involved in a lawsuit with Argent's board.
The case has since been settled.
"I would never do business with him again," said Morel of Jones.
Morel said Jones had done well initially to sell Argent's telecoms billing software to network operators in emerging markets like Afghanistan, Iraq and Liberia.
"In the first three years we got revenue up to $8 million," she said.
"Then it flat-lined."
By 2006 Morel claims the company was in poor financial shape as new revenue failed to materialise.
"It was a really sick year. We didn't have much money left."
Jones was replaced as Argent chief executive by Larry Barker, a veteran of the US IT industry.
"Larry was handed a company with a $2 million funding deficit," said Morel.
The year ended with an "unexpectedly large loss". A revamp of Argent's software helped it win sizeable deals in the Cook Islands and South Africa last year, but the new business wasn't enough to fend off insolvency.
Jones, who is again aiming at emerging markets with Mobilis, rejects claims that responsibility for the failure of Argent lies at his door.
"It was in good shape when I was there. Argent was my legacy and I thought I'd put it in good hands. For someone to point the finger at me for that is just wrong."
He puts his departure from Argent down to the recognition that the company needed new management skills.
"We built a great company in five years and it was time for me to move over and bring in more expertise."
The Redknee purchase, valued at $675,000 in cash and the assumption of US$270,000 ($339,000) in debt was, combined with the other sales, better than the initial deal put to Argent when it was in voluntary administration in January, said McGrath Nicol receiver Kerryn Downey. It is yet to emerge what payout Argent creditors are likely to receive.
"It's too early at the moment to say. The receivership will end reasonably quickly and it is likely to be put in liquidation," said Downey.
But the investors who backed Argent, No 8 Ventures and TMT Ventures are likely to be out of pocket with claims in the vicinity of $2.5 million to $2.7 million covering loans made to Argent. The Redknee deal would save the jobs of around 10 Argent employees.
