Guvera Calls In Deloitte: Offshoots In Administration
Music-streaming outfit Guvera’s parent company is looking to rejig and concentrate on overseas markets following the ASX’s decision to block its much-criticised stockmarket listing (CDN, June 20). And accountancy firms that persuaded clients to pump money into the “sure bet” Guvera could be facing a furious reaction – and possible legal action.
Guvera is said to owe creditors more than $20 million, which it had intended to repay with part of the IPO proceeds. The company said yesterday it had appointed Deloitte to lead a restructure that it hopes will “optimally position the company to achieve its future strategic objectives.”
Two subsidiaries, Guvera Australia and Guv Services, have been placed into voluntary administration.
The parent body, Guvera Limited, “will work closely with the administrator to provide financial assistance for creditors of these entities via the administration process,” a company statement said.
Guvera had hoped to raise up to $80 million in the now-blocked IPO, despite reporting a loss of $55.7 million for the first half of 2016 and losses for the first nine months of financial 2016 of about $80 million.
The company says it now intends to focus on overseas markets, including India, Philippines, and United Arab Emirates. It has shelved planned operations in Argentina, Chile, Colombia, Hong Kong, Malaysia, Peru, Singapore, Thailand, Ukraine and Venezuela.
Little was said about the plight of hundreds – possibly thousands – of accounting practices’ customers who had been persuaded to pump money into the company ahead of the float. They could be facing major losses, with many said to be fuming and contemplating legal action against the agencies involved.
Said Guvera Darren Herft on ABC Radio News last night: “I don’t think we will try to list again on the ASX.”