Once-promising satellite group Newsat Limited (ASX: NWT) has admitted defeat and called in the administrators and receivers and entered the liquidation stage.
According to an announcement by the company, creditors decided over the weekend to wind up the company and get what they could from the remaining assets.
Not that there's much left, last month Newsat sold its teleports in Adelaide and Perth, including land and equipment, as well as most of the customer and supplier contracts to Speedcast International Ltd (ASX: SDA), reportedly for just $12 million, around 7x earnings before interest, tax, depreciation and amortisation (EBITDA).
It's a sorry end to Newsat for a company that once offered so much. Plans to launch not one but two Australian satellites and build a truly Australian satellite and aerospace company came to naught.
For existing shareholders left with Newsat shares, you will probably need to keep watching the website of the administrators PPB Advisory to find out when shares are declared worthless – so you can report them as capital losses in your tax return. It's extremely unlikely that ordinary shareholders will receive a cent once the company has been completely liquidated.
But if you think this is a quick process, it's usually not and could drag on for years.