Administrators of Stargroup, aiming to build Bitcoin ATMs, push for extension of convening period
The outcome of the process of seeking proposals for the recapitalization of the company and/or the sale of its assets will not be known for some time, according to Stargroup’s Administrators.
The second meeting of creditors of Australian financial technology company Stargroup Ltd (ASX:STL), which is known for its efforts to develop Bitcoin ATMs, seems further away than initially envisaged, as the administration process marks slow progress.
Let’s recall that the administration covers: Stargroup Ltd, Star Payment Systems Pty Ltd, Stargroup Investments Limited, and Star ATM Pty Ltd.
In a filing with ASX today, the joint and special administrators of PPB Advisory, appointed on November 21, 2017, said they had recently submitted an application with the Supreme Court of Western Australia, seeking orders to extend the convening period for the administrations of each of the companies for a further 90 days. This extension was granted by the Court on December 12, 2017.
The Administrators note that the Receivers and Managers are in the process of seeking proposals for the recapitalization of the companies and/or the sale of their assets. As the outcome of this process will not be known for some time, the Administrators sought the extension of the convening period to enable proposals to be properly presented and considered.
The effect of the extension is that the latest date by which the second creditor meeting is now required to be convened is March 19, 2018.
Securities in Stargroup have been suspended from official quotation on ASX since October 19, 2017, as the company said an announcement on its debt restructuring was due. About a month later, on November 20, 2017, the company announced that it appointed Richard Tucker and John Bumbak of KordaMentha Restructuring as Receivers and Managers. The Receivers and Managers have advised that they intend to pursue a “business as usual” strategy and that they start an immediate process to seek expressions of interest to sell or recapitalize the business.
Earlier this month, Stargroup announced that Mr Todd Zani had stepped down from his role as Chief Executive Officer of the company. Mr Zani is no longer employed by the company. He will not work-out his notice period.
