Elexir talks fail

By Iain Scott, ITWeb group consulting editor

Johannesburg, 17 Oct 2005

Elexir Computer Services, a subsidiary of JSE-listed Elexir Technology Holdings, has been placed in liquidation by one of its creditors.

Elexir, whose share was suspended last week for failing to submit its annual report on time, was in talks to dispose of the subsidiary in a bid to slash debt levels.

However, it says in a cautionary announcement that the talks, first announced in May, were unsuccessful, resulting in the liquidation.

At the same time, it has told shareholders that it has entered into other talks, the nature of which have not been disclosed.

Elexir incurred a R2.78 million loss for the 18 months to February, a period during which CEO James Casey said management was focused on rationalising the group in a bid to reduce debt within operating companies, enabling management to explore alternative strategies.

The period saw the group close Elexir SA, dispose of property in Pitstop, dispose of the Lucent division in Elexir Computer Services and restructure the balance sheet through the exchange of shares for debt.

The company released the results for the 18 months to February at the end of June, narrowly avoiding suspension of its share at that time. JSE rules stipulated that a company`s figures must be published within three months of the end of a trading period.