Stargroup, aiming to build Bitcoin ATMs, adjourns AGM, as joint administrators take over
Quotation of Stargroup’s shares has been suspended since mid-October 2017, as the company tried to restructure its debt. Today, the joint administrators of PPB Advisory sought to adjourn the AGM.
Australian financial technology company Stargroup Ltd (ASX:STL), which is known for its efforts to develop Bitcoin ATMs, today sought to adjourn its annual general meeting, as the company is now in administration.
In a brief filing with ASX, the joint and special administrators of PPB Advisory, appointed on November 21, 2017, said they filed an application with the Australian Securities and Investments Commission (ASIC) to adjourn the AGM for a period of up to six months. By the time the AGM is reconvened, it is expected that a restructuring proposal will be available for shareholders. The AGM was originally called for November 29, 2017.
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.
