On the same day that Foxtel announces Presto is closing down, comes a press release that Quickflix is back from voluntary administration.
In April this year, Quickflix appointed business consultancy Ferrier Hodgson as voluntary administrator as the company buckles under increasing pressure in the SVOD market. But now Quickflix has announced it will continue to trade, return for creditors and jobs retained.
Full press release:
Deloitte Restructuring Services partners Jason Tracy and Richard Hughes were appointed Joint Voluntary Administrators of Perth-based DVD rental and digital content streaming business Quickflix Limited (ACN 102 459 352) on 6 May 2016.
The business was established in 2003 and listed on the ASX in 2005. Its head office is in Perth, and it operates a distribution centre in Auburn in Sydney
At the second meeting of creditors in Perth on 4 October 2016, creditors approved a Deed of Company Arrangement (DOCA) proposed by US-based Karma Media Holdings LLC.
The DOCA will see Karma Media Holdings take control of the Quickflix business and its assets in exchange for payment of AU$1.3 million into a Deed fund. Other benefits include the assumption of certain employee entitlements, the mitigation of future contingent claims and the continuation of services to Quickflix’s customers.
Unsecured creditors will receive as much as 21.5 cent in the dollar, the majority of employees will be retained by the new owner, and employees not retained will receive outstanding entitlements in full.
Joint Voluntary Administrator, Jason Tracy said: “Quickflix has encountered corporate challenges and impediments in a highly competitive environment. As Administrators we have been able to continue trading the business since our appointment, reduce costs, retain value, keep employing the majority of staff, and conduct a global sale process.
“The result is a good outcome for stakeholders. Under new control, the Quickflix business will continue to trade, 24 employees will be retained, departing or already departed employees will receive all relevant entitlements, creditors will get a return and suppliers will have the option of trading with the continuing business.
“I would like to thank Quickflix management and employees, customers, creditors and suppliers for their support.”
The DOCA provisions are scheduled to be completed by early February 2017.
