Anz Hit By Bill Express
Sydney Morning Herald
Wednesday July 9, 2008
ANZ will write off $53 million of debt following the collapse of the bill payment network Bill Express, but the bank has already swung into action to salvage most of the network of 4700 payment machines located at newsagents and other retailers across the country.
Bill Express, whose shares have not traded since May 1, appointed Craig Crosbie, of PPB, in Melbourne, as administrator following a meeting with creditors yesterday - a meeting triggered by its disclosure that a crucial deal to recapitalise the company had collapsed.Bill Express built a national electronic payment network with $1 billion of annual revenue and $40 million of earnings from processing bill payments and selling pre-paid mobile phone credit. That empire has now collapsed after Saudi Arabia-based Al-Othman Group cancelled its planned investment in the debt-stricken company. ANZ confirmed that it would write off the $53 million Bill Express owed it.ANZ revealed it also owned 13.2 per cent of Bill Express, having seized the stake from the stricken broker Chimaera Capital. ANZ will install 2600 Eftpos machines at newsagents and supermarkets in the next 48 hours to stop rival banks from winning part of the lucrative electronic payment network.
© 2008 Sydney Morning Herald
