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Business News Digital
Guvera creditors accept deal on the two companies in administration
By Chris Cooke | Published on Tuesday 2 August 2016
Creditors of the two subsidiaries of struggling streaming service Guvera which were put into administration last month have accepted a so called ‘deed of company arrangement’ which will stop the companies from actually being wound up.
One of the administrators overseeing the administration of Guvera Australia and Guv Services said in a statement: “The creditors accepted a deed of company arrangement for each company. These DOCAs will provide greater certainty of a return to priority creditors, such as employees, than liquidation of the companies would have done”.
The terms of those arrangements – and quite what payments creditors will see – are not clear. The two companies owed over AUS$12.5 million when they went into administration, with the tax man, collecting society APRA/AMCOS and marketing and PR companies among the creditors. As previously reported, former staff of the digital music company were also affected.
Guvera has bailed on several markets, including home country Australia, since having its planned IPO blocked by the Australian Securities Exchange and having to put the two Aussie companies into administration as a result. The firm insists that it can still succeed as a primarily ad-funded streaming service in certain emerging markets, though many outside the business remain sceptical about all that.
