Problems pile up at fintech firm Stargroup, as CEO steps down
Two weeks after the appointment of Receivers and Managers, Stargroup, which is famous for its plans to develop Bitcoin ATMs, announces the departure of its CEO.
FinanceFeeds is keeping an eye on Australian financial technology company Stargroup Ltd (ASX:STL), which is known for its plans to develop Bitcoin ATMs. The firm is now going through some challenging times and has appointed Receivers, Managers and Joint Administrators.
The problems for Stargroup continue to grow as, in a filing with the ASX today, the firm announced that Mr Todd Zani has 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.
The Receivers and Managers continue to pursue a going concern sale or recapitalization of Stargroup.
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 to the Company and three of its subsidiaries, including:
- Star Payment Systems Pty Ltd;
- Stargroup Investments Limited;
- Star ATM Pty Ltd.
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.
They have already managed to secure a revised agreement between Stargroup and Goldfields Money Limited. Under the new agreement, Goldfields will continue to provide bailment services to Stargroup based on a reduction in the facility limit. Maintaining cash in the ATM network operated by Stargroup Limited is seen as vital for maintaining the business.
The joint and special administrators of PPB Advisory were appointed on November 21, 2017.
