End of the E-Force saga

The former timber company turned tech business last night announced it had been unable to reach an agreement with its banker, HSBC, which would have allowed it to continue operating.

The demise has happened quickly.

Last November the company announced it had lost nearly $3 million for the half-year ended September 2000, reflecting the write-down of its web portal.

In early December it closed the portal to concentrate on its Product Sourcing International acquisition, and just after Christmas rang the warning bell about being in financial difficulties.

The blame then was laid partly at the door of commercial leases entered into when the company was trading as Paynter Timber.

Income from sub-tenants were not enough to meet rental payments, leaving E-Force to pick up the rest of the tab.

However with insufficient income the company found itself in a rental squeeze, and has been unable to put together a restructuring proposal acceptable to its bank.

Misery loves company and E-Force can find plenty of it around the world where dot.coms, like the tech sector in general, have fallen from grace with breathtaking speed.

But E-Force doesn't need to look worldwide.

In New Zealand alone one-time tech favourite Advantage (NZSE: ADV) is trading at a two-year low, eVentures (NZSE: EVZ) just announced a full-year loss of more than $4.5 million, and telco software stock Commsoft (NZSE: CSG) has nose dived from 70 cents to 20 cents a share in a matter of days as it struggle with debt recovery.

The 4i index - which tracks New Zealand tech stocks - had a base measurement of 1000 at the beginning of last year and hit a high of more than 1100 in March 2000.

The index is currently sitting at less than half its base, at 490.

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