Major health provider collapses owing $10m

A company operating in the health space has gone bust with over 400 creditors owed money.

A “leading” Australian provider of telehealth services has been ordered into court liquidation with debts estimated in excess of $10 million.

The company, Ereports Pty Ltd, described itself as “a global network of 400 plus leading medical experts across 65 plus specialties and locations in Australia, South Africa and the UK and a “leading provider” of expert medical opinions worldwide on its website.

But the Australian arm went into administration in April with Thomas Birch, Rachel Burdett, and Jeremy Nipps from insolvency Cor Cordis appointed as administrators.

Ereports was placed into administration as it faced an application from the Australian Taxation Office with the Federal Court, which sought the company to be wound up over $1.4 million in outstanding taxes.

However, the Melbourne headquartered company was sent into liquidation on May 3 after Cor Coris recommended to the Federal Court it be wound up when a buyer pulled out of a potential deal.

Ereports was gone under owing potentially in excess of $10 million. Picture: Ereports website

The liquidators said they had taken steps to complete an orderly wind-down of Ereports’ operations but are still seeking a buyer with expressions of interest due by May 24.

They said investigations had commenced into the events leading to the appointment of liquidators.

“With particular focus on identifying the nature and substance of the various related party transactions that were entered into prior to our appointment and which a liquidator may now seek to recover,” they said.

“Our preliminary investigations indicate that creditors may be owed in excess of $10 million as at the date of appointment.”

Liquidators’ investigations had found more than 400 medical specialists were owed millions.

A a small number of staff had been kept on to assist with maintaining the online platform, and assisting clients and specialists with ongoing access to records while they search for an alternative service provider, the liquidators added.

Cor Cordis were also “maintaining the integrity and security of the books and records stored on the platform in accordance with the various privacy and health regulations”, they added.

A full report to creditors is expected in August.

The LinkedIn page for Ereports can no longer be found. Picture: Screenshot

A spate of tech companies have gone under in the past few years and although the industry crunch has slowed down, there are still outfits going bust owing huge amounts.

An Australian tech company backed by one of the largest banks is on the brink of collapse after appointing administrators at the end of last month.

Plutora Pty Ltd went into voluntary administration in March over a dispute with the tax office and has more than $37 million in liabilities.

This month a subsidiary of an Australian tech and media start-up that had $12 million worth of investment poured into it has collapsed.

E-Mersion Media (Aust) Pty Ltd went into administration and according to the first meeting of creditors, the company owes more than $13 million but some amounts are disputed.

In January, news.com.au revealed that Australian blockchain start-up lauded as the future of banking and backed by some of the country’s biggest financial institutions has collapsed.

Lygon went into liquidation with debts of $14.3 million last year, according to a statutory report lodged with the corporate regulator at the end of 2023.

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