The phone lines between Spain and Sydney could be running hot tonight after Jim Flynn, the former CEO of failed technology media company Derwent Howard, bought his failed company back for $160,000 after placing the company into administration with debts of over $4M in August.Late last year as cash flow problems emerged at Derwent Howard, Flynn’s former partner Nathan Berkley fled to Spain to never return.
Despite this, Flynn still managed to find $434,052.59 to pay Berkley only weeks before the company was placed into administration.
With Berkley in Spain, Flynn then moved into the porn business in an effort to fix his financial woes; however, this appears to have failed (see separate story here).
Now he wants another crack at making it in the technology market via a new company called The Media Factory, which has acquired the former assets of Derwent Howard in what appears to be a carefully orchestrated move.
Earlier today, Flynn and his advisors stood in a huddle in the corridor of the Institute Of Chartered Accounts as administrators and Flynn cut a deal with creditors. Ironically, it was the Institute who only weeks ago dumped Flynn from publishing their own publication.
Shortly after the meeting, Nick Malanos, from solvency and forensic accountants Worrells, issued a statement. It said, “A majority of creditors to technology publisher Derwent Howard Media today accepted a Deed of Company Arrangement as proposed by the company’s director, Mr Jim Flynn, at a creditors’ meeting held in Sydney.”
Malanos said that a copy of the executed DOCA would be lodged with the Australian Securities and Investments Commission shortly.
Malanos added, “Today’s decision by creditors to approve the Deed of Company Arrangement means winding up proceedings against Derwent Howard Media will not go ahead.”
Under the arrangement, Flynn a onetime BRW ‘darling’ when he was described as a leading technology publisher, has offloaded millions in debt for printing, distribution and tax bills.
He has also obtained the former assets of Derwent Howard at the knock-down price of $26,372. This included computers, servers, notebooks, desks, stock in hand and furniture.
Under the deed of arrangement, Flynn will only have to pay $50,000 by June 2010, $40,000 by September 2010 and the remainder via negotiation with the administrator.
It is not known whether Flynn will return to the porn industry or continue publishing technology magazines for clients like Sony and Nintendo.
