Photon Founder Steps Down from Board

Tim Hughes, the founder of Australian marcoms and research group Photon, has left the company as it continues its attempts to recapitalise.

The group - which numbers 50 agencies including market research firms The Leading Edge and Jigsaw Strategic Research - is struggling to raise the necessary finance to recapitalise, and faces going out of business if it fails to renegotiate $AUD 176m worth of earn-out payments due to owners of some of its agencies.

Photon first ran into financial trouble after making $AUD 200m worth of acquisitions that left it with $AUD 176m payout liabilities (the amount the company has to pay to the owners of businesses acquired by Photon if they reach earnings targets in the years following their sale) that it is unable to meet without extra funds.

While it has now renegotiated most of these liabilities, it remains suspended from the ASX (Australian Stock Exchange).

Hughes had already resigned as Executive Chairman.

Web site: www.photongroup.com .