Court gives Quickflix six months in stay of execution
Quickflix has been given a reprieve from closure by a court, as administrators try to find a buyer for the ailing business.
In an announcement to the Australian Securities Exchange (ASX:QFX) the troubled streaming service said the Supreme Court of Western Australia had given it an extension until October 21 to call its second meeting of creditors.
In the announcement, administrator Richard Hughes said the company had sought the extension to give it time to “seek proposals from parties interested in the purchase of the company’s business and/or recapitalisation of the company”.
The first Australian video streaming service went into administration last month after failing to reach an agreement with rival service, Stan, on buying its stake in the company.
Quickflix told the market that Stan had demanded either a $4m payment or $1.25m and the transfer of all of Quickflix’s streaming customers. Quickflix is currently in a trading halt with a market capitalisation of $2.22m and cash on-hand of $659,000.
In today’s letter, Hughes said the company does not anticipate taking the “full extension period that was given” and that it intends to “convene the second meeting of creditors as soon as possible”.
Earlier this month the company put a for sale notice on its assets, which includes a marketing database of around 900,000 names, as well as tens of thousands of Blu-ray and DVDs stored at a Western Sydney warehouse for its DVD postal business.
