Buddy Technologies has been placed into administration with receivers called in to take over operations.
Christopher Hill and David McGrath of FTI Consulting were appointed joint and several receivers and managers at 5pm last night. They are, according to documents filed with the ASX, in control of the Buddy’s assets, shares in its subsidiaries, undertaking and operations.
“PFG has provided BUD with a limited funding facility to allow the Group to continue to trade in the short term during the receivership period.
“It is the Receivers’ intention to draw down against this facility as and when required and to provide those funds to the Subsidiaries so that day-to-day obligations can be met at that level.”
The announcement states:
- It is the Receivers’ expectation that the Subsidiaries will continue to operate on a business-as-usual basis for the immediate future.
- PFG has indicated it does not presently intend to take any enforcement action against the Subsidiaries.
- The Receivers will shortly commence a process seeking offers for a sale or recapitalisation of the Group.
This comes a week after the ASX asked the company to justify its listing on the stock exchange, marking the third time in under 12 months the company was asked to ‘please explain’ by ASX.
The Australian Securities Exchange put eleven questions to the company, including the very pointed: “On what basis do the directors consider that BUD is a going concern?”
Buddy Technologies posted a six-month loss of A$49.4 million recently.
The company has $1.3 million in cash, and $24.7 million in liabilities, with negative working capital of $7.1 million and a net liability position of $6.4 million.
Buddy said that $16.1m of its current liabilities, “while classified as current liabilities in the half year report, remain due and payable in December 2023 and May 2024’’.
This money is owed to venture debt firm Partners For Growth, who “continually engaged with, and continues to engage with BUD on a regular basis in relation to BUD’s financial and operational performance and remains supportive.’’
