Guvera creditors agree deal to keep company trading

Creditors of music streaming firm Guvera have accepted a deal that will allow the company to keep trading after being told by administrators it was a better option than closing down the cash-strapped operation.

Screen Shot 2016-08-02 at 9.36.26 AM

Deloitte joint voluntary administrator, Ezio Senatore, confirmed in a statement after yesterday’s second creditor’s meeting that “the creditors accepted a Deed of Company Arrangement (DOCA) for each company”.

“These DOCAs will provide greater certainty of a return to priority creditors, such as employees, than liquidation of the companies would have done,” he said.

No terms of the DoCA were disclosed and it is unclear what chance creditors, which includes media agency Media Partners – or shareholders – have of recouping their cash.

Guvera, which owes around $13m to staff and creditors, nose-dived after it was refused permission to list on the Australian Securities Exchange.

Yesterday’s decision will enable Guvera to keep trading in the markets where it has retained an operation – India, Indonesia, Saudi Arabia and United Arab Emirates. It told users in Australia last week that, “with a heavy heart”, it was withdrawing the service locally.

“Born and launched into Australia in 2008, we have had the best time bringing all the latest tunes to the ears of our listeners here,” a note sent to users said. “Unfortunately, and with a heavy heart, the time has come to pull back our operations in the country.”


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.