The recent upset in the Internet service provider (ISP) market caused by the provisional liquidation of CiTEC subsidiary Internet Office Parks (IOP) has resulted in a major coup for ISP start-up NNet. Appointed by liquidators Antrust, NNet has managed to scoop up about 50% of IOP`s former clients.
Antrust liquidator Lot Mahlangu confirms that Paradigm Rentals brought the application for IOP`s liquidation to insolvency practitioners Antrust on 14 December 1999. Provisional liquidation was granted, and NNet was appointed by Antrust to provide continuity of service to IOP`s former clients, commencing 10 January 2000.
"Everything we do benefits IOP`s creditors," explains Mahlangu. "For every client that NNet signs up, Antrust receives a percentage of all resulting revenue. This in turn goes towards IOP`s creditors. This doesn`t mean that all IOP`s clients are with NNet; by the time we went into negotiations with them, 50% of IOP`s client base had sought service elsewhere."
Although reluctant to reveal too many details, NNet GM Yango John comments: "We`ve already been contacted by about 120 clients, even though the fax announcing the changes was only sent out on 12 January. In essence, IOP clients have experienced poor or no customer service for the four weeks since that company went into liquidation."
Established just a year ago, NNet`s first former IOP clients included placement agency Emmanuels Staffing Services and laboratory equipment specialist Premier Technologies.
Costa Joannides, company IT manager, describes Emmanuel`s initial dealings with NNet: "We went to IS, and simultaneously, NNet approached us. NNet uses Cisco products, and as Emmanuels is a preferred Cisco customer, we eventually opted for NNet. This was after three days of mediocre service from IS. Our systems went down on 12 December and NNet had us reconnected on the very same day."
Carmen Hancock, Premier Technologies IT manager, paints an equally glowing report of NNet`s services. "We were down for two weeks, and IOP said that it was because the lines had been stolen. We actually learned of IOP`s liquidation through another SP, who called us up out of the blue.
"NNet approached Premier Technologies at the beginning of December, prior to our learning that IOP had gone into liquidation. NNet`s service was excellent from the beginning - we deal on a 24-hour basis with our overseas suppliers, and NNet restored that connection with a loan PC and a dial-up connection until further arrangements could be made."
Both Joannides and Hancock also claim to be saving on their companies` respective IT spend to the tune of several thousand rand a month, thanks to NNet`s approach to providing its services.
NATH subsidiary CiTEC acquired IOP, previously owned by the Paradigm Group, early last year. CiTEC is an Internet access provider focusing on the implementation, supply and maintenance of bandwidth and managed WAN solutions for the corporate environment.
On the matter of IOP`s liquidation, CiTEC MD Jason Berry says: "This is an unfortunate case of an IT company that overextended itself, and although there is quite a bit that I want to say, at the moment, I don`t have a statement to make other than that all relevant facts will emerge when the liquidators bring them to light."
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