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Business News Digital
Guvera must find nearly a million to meet creditor obligations tomorrow
By Chris Cooke | Published on Tuesday 30 August 2016
The heat may have been taken off struggling streaming music firm Guvera after creditors of the two subsidiaries it put in administration accepted a ‘deed of company arrangement’ earlier this month, though according to The Sydney Morning Herald tomorrow is going to be the first big test of that arrangement with nearly AUS$1 million in payments due.
The newspaper says that under the deed of company arrangement, the Guvera parent company will pay AUS$150,000 to creditors of its Guvera Australia company each month and another AUS$30,000 to creditors of Guv Services. But this month it must also pay AUS$761,200 in outstanding employee superannuation entitlements, which brings the total bill to AUS$941,200.
Some have questioned the Guvera company’s ability to meet its commitments under the ‘deed of company arrangement’, despite it successfully negotiating down its liabilities to all but former employees quite significantly. So tomorrow will be a key opportunity for the streaming firm to address those concerns.
The Herald notes that administrator Deloitte assured creditors that it would be “active” in ensuring payments due to be made by Guvera Limited were indeed paid on time. If deadlines are not met, the administrator said: “Creditors can consider an extension, or variation of the [deed], or place the company into liquidation”.
