The directors of Guvera, the Australian streaming service that came spectacularly crashing down after raising $185 million from investors but only generating $1.2 million in revenue, are preparing for their first creditors meeting in Sydney next Thursday.
The Australian Financial Review reports that the failed company directors could face up to 150 creditors next week who are owed around $15 million.
Guvera’s attempt to float on the Australian Stock Exchange was blocked by the ASIC after the company proposed a valuation of over $1 billion despite loss of over $81.5 million in the 2014/2015 financial year and $80 million in the first nine months of this financial year.
Both the technology and music industries were humoured by the bold attempt to raise capital on such an outrageous valuation as audience figures for the company seemed indeed rubbery.
Guvera subsidiaries Guvera Australia and Guv Services were placed into administration after ASIC blocked the float. The two subsidiaries contain the company’s creditors while the shell company is thought to contain the IP.
The 150 creditors include 60 staff who have now all been laid off.
Guvera was running a monthly cash burn (losses) of $6 million a month. The shell company is proposing to reduce the burn to $1.6 million.
Creditors will meet at the Deloitte office in Parramatta next Thursday July 7. A second creditors meeting expected to be held on August 1.
