Computer Power students stranded

Ailing information technology trainer Computer Power Group (CPG) should have its fate decided by the end of next week, but there's little hope for more than 1,000 stranded students, according to administrators. James Stewart, a partner at Ferrier Hodgson, told ZDNet Australia the situation had progressed after his company made several moves to cut costs.

Ailing information technology trainer Computer Power Group (CPG) should have its fate decided by the end of next week, but there's little hope for more than 1,000 stranded students, according to administrators.

James Stewart, a partner at Ferrier Hodgson, told ZDNet Australia the situation had progressed after his company made several moves to cut costs.

"We're out of the sites [premises] in terms of where the business was, because of the financial position.

"There's 350 leased computers that have gone now and we've had to terminate staff," he said.

Singapore education group EasyCall announced last week it had appointed the administrators due to "bleak" prospects of a turnaround for the loss-making business "in the near future". EasyCall had acquired CPG from technology trainer Spherion Group.

"There's been a lot of interest in the IP of the company -- the course materials and so on," Stewart said.

"There's been more interest than I had anticipated in a company of this type."

Stewart said he met CPG creditors, staff and students on Tuesday and had told them to expect an outcome in 10 days.

"The chances of their courses being continued in the short term are pretty slim, and I've been quite blunt with the students on that.

"This company will probably be liquidated in January," he said.

However the administrators are working with the Australian Council of Private Education and Training in the hope of transferring students to alternative courses.

A statement on the Ferrier Hodgson Web site issued after the meeting of creditors said the company had been inundated with calls and had had to take messages and return calls.

"We are continuing to return phone calls and will do so until all calls have been answered," the site said.

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