Innovative Software Direct plc

August 25, 2011 10:31 ET

Appointment of Administrator

25 August 2011
                                  INNOVATIVE SOFTWARE DIRECT PLC
                                     (the "Company" or "ISD")
                                   Appointment of Administrator
The Board regretfully announce that the arrangement  that was in place to accept an offer, subject
to  contract, from IA Global Inc, is no longer in place. The Board set a deadline of  Friday  19th
August for transfer of all monies outstanding in relation to the satisfaction of the consideration
and no funds were received. This deadline was set to coincide with the expiry date of  a Notice of
Intention  to Appoint  Administrators  for ISD Plc.

The timeline for finalisation of this agreement progressed beyond a reasonable period because of a
number  of things, but the capital markets in the USA and the Japanese Natural Disaster  in  March
(all  of IA Global Inc current companies are located in Japan) were the main contributors. The  IA
Global Inc agreement was the catalyst for rebuilding the ISD Plc balance sheet and the collapse of
this  arrangement left the Board with no alternative other than to seek professional guidance from
their external Advisers.

Following  the  failure  of the arrangement to deliver, and  in accordance with  specialist  legal
advice  from  Dickinson Dees LLP, Mr Gerald Krasner and Mr Andrew Haslam of  Begbies-Traynor  were
duly  appointed  as  Administrators  of ISD Plc on Monday 22nd  August  2011.  The  Administrators
are   urgently seeking to sell the  main investments of the Company, namely  its shareholdings  in
Powerdial  Systems   Ltd and Powerdial Services ltd, neither of which is in  Administration.  Both
subsidiaries continue to trade.

The Directors of the Company accept responsibility for this announcement.


Contact Information

  • Innovative Software Direct plc