The administrator appointed to managed IT services Forum Group has sold the business to Sydney-based IT and voice service provider Our Kloud, owned by Eric Constantinidis, a man described in the Federal Court as a cousin of Bill Papas.
Eric Constantinidis is the sole director and shareholder of Our Kloud. Court documents reveal that Eric Constantinidis and Bill Papas are cousins and have both been involved in amateur car racing in the Fanatec GT World Challenge Australia.
Mr Constantinidis is recorded on Audi’s website as a customer who participated in a race series, alongside Mr Papas. The pair have been described in motor industry media as “racing friends”.
Our Kloud was mentioned in court proceedings initiated by Westpac against Forum Finance and Mr Papas. Our Kloud provided Forum with computer servers, and Westpac was unable to get access to them for days after it launched its legal action.
Jeremy Giles, SC, representing Westpac told the Federal Court on July 7 there was “a lack of engagement” by Our Kloud, observing “a slight concern that a director and shareholder of the company appears to be Mr Papas’ cousin”.
“I can’t tell you it’s other than a genuine and honestly run business, but there is a family link.”
A spokesperson for Mackay Goodwin, the voluntary administrators, said Our Kloud was found “through a competitive bidding process, and the final sale was approved and cleared by major creditors”.
“The purchaser was able to pay the full asking price up-front, which was the condition of sale,” the spokesperson said. “The paramount issue for the administrator was to keep the business trading, prevent 70 jobs from being lost, and ensuring employees could retain benefits worth millions of dollars.”
“I’m pleased that we’ve been able to bring on board over 70 Forum Group employees, adding their talent and expertise to our growing team. We’re looking forward to this next chapter in Our Kloud’s journey,” Constantinidis said.
There is no suggestion that Mr Constantinidis had any connection to, or knowledge of, the alleged fraud by Mr Papas and the Forum Group.