A technology company whose backers include Dermot Desmond's IIU, the State and Bank of Ireland has told workers it is laying off this week that it cannot pay their December salaries or statutory redundancy entitlements.

Shareholders yesterday appointed Brian McEnery of BDO as receiver to troubled telecoms company Intune, which has an estimated €10 million deficit between assets and liabilities.

The company is letting go about 70 workers from its Dublin and Belfast offices in a round of compulsory redundancies it announced internally in October.

Yesterday it told staff in Dublin who are losing their jobs this week it would not be able to pay either their wages for this month, or their statutory redundancy entitlements, as the company is insolvent and had to be placed in receivership.

The Belfast operation, which is a subsidiary of the Republic- based parent, will be placed in liquidation with the loss of most of the jobs based there.

Angry employees yesterday pointed out that while the company began consultations with them on its redundancy plans in October it has now left them with nothing at a critical time of the year for them and their families.

“We’re not even getting the minimum that they promised us,” one said.

Intune is continuing to trade and the receiver will try to find a buyer for the business, which will retain about 40 staff in Dublin.

Mr McEnery said yesterday the company hoped to source funding from some shareholders to pay those employees’ wages and keep Intune in business until a buyer is found.

Liquidation
He acknowledged that the situation was difficult for those who were facing the loss of their jobs but said that the only other option to the business was liquidation, which would have resulted in all staff being made redundant.

“We are trying to save as many jobs as we can,” he said.

Staff being let go can claim wages, redundancy and holiday pay due to them from the State- operated social insurance fund. The receiver will process these claims.

Intune's shareholders include Bank of Ireland, Kernel Capital Partners, Enterprise Ireland, Dermot Desmond's investment vehicle IIU, Spark Capital, Balderton Capital and the ESB-owned Novus Modus.

As well as holding equity, many of the shareholders have secured loans over the company’s assets and agreed to the appointment of the receiver yesterday.

The receivers appointment “crystallises” their security, ensuring they will be in the first group of creditors to recover any proceeds if there is a sale.

As a result, a number of shareholders have indicated they are willing to provide some further funds to Intune while a buyer is sought.

The receiver is hopeful a buyer can be found as the company owns valuable intellectual property.