Auckland-based ISP - hosting company NZNet has been placed into liquidation, following a coverage scare in October.

The Companies Office website states that NZNet has been in liquidation since November 17, with Waterstone Insolvency appointed to manage the operation.

Last month TechDay reported that the company's website and phone lines were suffering outages and clients were experiencing intermittent service.

The story led to contact from ex-employees and suppliers to NZNet, who told us the company owed a lot of money to creditors after spending a significant figure for advertising on the back of supermarket dockets.

NZNet had been in operation since July 1995.

Update: Tony Vercauteren, director of Superdockets Advertising, has contacted TechDay to clarify that it wasn't his business that pushed NZNet into liquidation.

"This all started happening a long time before Superdockets came in," Vercauteren says.

NZNet ordered $90,000 worth of supermarket docket advertising, Vercauteren says, but only a fraction of this amount was ever paid.

When Superdockets took the matter to the High Court, NZNet director Stephen Andrews argued that he was refusing to pay the company because they didn't come through with the advertising, a claim Vercauteren denies.

"He is one of the biggest shysters you could ever come across."