Australian digital media firm Swish Group has entered into voluntary administration after being unable to raise essential funds in the current "continuing difficult economic environment."

Melbourne-based Swish has appointed Richard Cauchi and David Lofthouse of CJL Partners to act as administrators of the company and its subsidiaries, which include digital music distributor Amphead, the exclusive partner for U.S. digital content aggregator the Orchard. Trading in Swish's shares on the Australian Stock Exchange has been suspended.

"The company has, in the last six months, been actively engaged in the process of restructuring its digital media businesses to reduce the losses being incurred in those businesses in the current difficult economic climate for media, technology and advertising companies," Swish said in a statement issued to the ASX.

"The difficult economic environment for raising capital and obtaining appropriate debt facilities for the continued operation of the business has further contributed to the company's recent difficulties." A creditors' meeting will take place this Monday (Sept. 7) following the Aug. 27 appointment of the administrators, a move roughly equivalent to Chapter 11 bankruptcy.

At the end of July, Swish reported a cash balance of just $12,000 Australian ($10,000) as at June 30, a figure which improved slightly to $96,000 Australian ($80,000) a month later. In the same statement, Swish said it intended to focus on its digital music businesses, sales and marketing businesses going forward. A week earlier, the Swish AmpHead business had struck an exclusive international partnership with Thai music conglomerate GMM Grammy and separately announced a license deal to supply music for sale on the domestic Telstra BigPond music site.

Swish's five main divisions include Bollywood film distribution unit Swish MG Distribution and audio-visual production company Swish Films.