E-Mersion Media: Pioneering Aussie tech company with F1 and FIFA deals collapses with $13million of debt

An Australian technology company which had won big contracts with Formula 1 and world footballing body FIFA, has collapsed with a reported $13million of debt. 

Melbourne-based E-Mersion Media (Aust) Pty Ltd has gone into administration and stood down its remaining staff. 

The company, which also had a UK office, was in the business of digitising print magazines, leading to contracts to produce publications for FIFA and F1. 

It's parent company E-Mersion Media Pty Ltd is still operating, but The Commissioner of State Revenue started winding up proceedings against E-Mersion Media (Aust) Pty Ltd in March, news.com.au reported.

Mathew Gollant, of restructuring firm CJG Advisory, has been appointed as the company's administrator.

Last year, half of its then 16 staff, including some senior leaders, left E-Mersion Media while the company faced legal disputes and criticism of some of its spending on expenses. 

This included $1million spent on travel expenses over three years, part of which was $100,000 to rent a luxury villa in the Qatar capital Doha for a year. 

Creditors say they are owed more than $13million, but some of the supposed debts are disputed.

Among the creditors are the Australian Taxation office, which is owed $1.1million, the firm's accountants, who are owed $23,000, and former employees who claim to be owned sums ranging from $2,000 to around $100,000.

The biggest creditor by far, though, is the parent company, which claimed it is owed $11.4million.

Each of the claimed debts were recognised at just $1 each at an initial creditors' meeting, which meant they could attend but would need to provide proof of what they said they were owed.

John Iliopoulos, the company's only director, said 'No one has more to lose in this than the parent company, the shareholders which obviously includes my family interest.

'I have and will continue to fight to try and save [the company],' he told news.com.au.

Mr Iliopoulos previously said the high travel expenses are 'just part of our business'.

'We're an Australian company, all our contracts are based overseas.

'It would have been way more expensive to book individual hotels for a month. It did work out cheaper to book (the villa) for the year. 

'We continued to negotiate deals in Qatar, I don't think it was a waste of money.'

Daily Mail Australia has contacted Mr Iliopoulos and Mr Gollant for comment.