Zultys had been in operation for exactly five years before the date it was declared bankrupt. It was sold on 30 October to newly formed Israeli company Pivot VoIP, created by Avi Winerub and “former software engineers” for $2,650,000 in cash—a far cry from what president and founder Iain Milnes (pictured left) says he put into the company.
“I founded the company exactly five years previously and have subsequently put $67 million of my own money into the company plus five years of real hard work,” Milnes said in an email sent to Technology & Business magazine, on 2 November 2006.
“We ran out of money at the end of July and made the majority of staff in the US redundant without making payroll that was due at the end of that month.
“We tried to do a deal outside of bankruptcy but couldn’t.”
Staff in Australia had little knowledge of the trouble the US-based company was experiencing, nor did distributors and partners.
PR company Upstream Australia partner Graham Cox says his company dealt closely with Zultys’ local staff throughout the ordeal. He says only three local staff holding key positions were left in the end and they worked up until the eleventh hour.
“The staff in Australia worked their guts out trying to do the right thing by that company, trying to do the right thing by their customers,” Cox says.
“They put their own interests to one side to make a number of commitments to clients like [local] councils (Kiama council is one) to ensure that the responsibilities were met and I think they put the interest of the company ahead of their own professional standing at that time.”
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