On the day that Seven West Media pulled out of Presto, local streaming company Quickflix has been reborn with new owners, after being placed into administration earlier this year.At a second meeting of creditors in Perth today, a deed of company arrangement proposed by US-based Karma Media Holdings was approved, with Karma to take control of the Quickflix business and its assets in exchange for a $1.3 million payment into a deed fund.
Deloitte Restructuring Services partners Jason Tracy and Richard Hughes had been appointed joint voluntary administrators of Quickflix in May.
“Other benefits include the assumption of certain employee entitlements, the mitigation of future contingent claims and the continuation of services to Quickflix’s customers,” Deloitte stated of the deed.
Deloitte advised that unsecured creditors will receive as much as 21.5 cents in the dollar, with the majority of employees to be retained by the new owner, with employees not retained to receive outstanding entitlements in full.
“Quickflix has encountered corporate challenges and impediments in a highly competitive environment,” Tracy stated. “As administrators we have been able to continue trading the business since our appointment, reduce costs, retain value, keep employing the majority of staff and conduct a global sale process.
“The result is a good outcome for stakeholders. Under new control, the Quickflix business will continue to trade, 24 employees will be retained, departing or already departed employees will receive all relevant entitlements, creditors will get a return and suppliers will have the option of trading with the continuing business.”
Deloitte stated that the deed provisions are scheduled for completion by early February next year.