Gadfly creditors to review Big Splash Media offer
Creditors of Gadfly Editorial Services, which rejected a $500,000 take-over offer by Big Splash Media last week, have been called to a meeting with the administrator to review the offer.
The meeting follows complaints made to the Australian Securities and Investment Commission by Big Splash Media and co-bidder Art & Australia magazine that the offer was never put to the creditors by administrator RMG Partners. Former Sydney Morning Herald editor in chief David Hickie is the biggest creditor, owed $1.5m.
Ian Purchas of RMG Partners sent a report to creditors recommending they approve a deed of company arrangement under which the firm would continue to trade under its existing management. The report claimed that the three titles produced by Gadfly – Australian Art Collector, Horse and Breeder and Luxury Travel – were worthless.
Big Splash Media publisher and managing director Peter Lynch told Mumbrella that creditors would be better off accepting his offer: $500,000 in cash and assurances that staff, among them 25 journalists, would be given first preference for jobs.
Lynch, who is the former group executive editor at SMH publisher Fairfax Media, has held a number of discussions with Hickie over the deal. He said: “I think David’s having trouble seeing the wood for the trees. I don’t want to sell the business off or to get rid of its people. I want to expand it.”
Big Splash, a specialist in custom, government and travel publishing, would make a good fit with Gadly, Lynch said.
Big Splash’s strategy is to “acquire good titles, take them online and keep the quality high,” he added.
Hickie was unavailable for comment.
Wise move from David Hickie, Not so wise from Peter by taking these complaints public.
What on earth does he hope to achieve?
Big Splash have nothing to offer. I am actually not sure that Big Splash even has a consumer title or has the consumer publishing background.
Milking Tourism Australia for a couple of million dollars for some inserts in the SMH does not maketh a publishing genius.
Nor does doing running a small custom publishing business.
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Please check your details. There was no joint offer made by Art & Australia. The Big Splash offer was put to creditors in the Creditors Report and rejected by the Administrator on the basis that it was not unconditional and that it was not in the interests of all creditors. Big Splash got to the creditor meeting by buying a tiny debt. You also haven’t got the names of the titles correct. Big Splash is just trying to make a lot of noise and I suspect is just getting itself an awful lot of press – a storm in a teacup. Why feed the fantasy?
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This whole Big Splash thing is a bit delusional really.
I like the line about “acquire good titles, take them online and keep the quality high,”
Huh?
Examples of this strategy being executed? With no job losses? Someone thinks they are playing Murdoch here.
Tim, do yourself a favour and take Peter’s talk with a grain of salt. It’s how he rolls.
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