Guvera creditors agree to keep two subsidiaries trading

The two subsidiaries that Guvera put in voluntary administration in June – Guvera Australia Pty Ltd and Guv Services Pty Ltd – have returned to management under the founders of the Australian streaming service.

Deloitte joint voluntary administrator Ezio Senatore said in a statement that at the second creditors’ meeting, “the creditors accepted a deed of company arrangement (DOCA) for each company.”

He added, “These DOCAs will provide greater certainty of a return to priority creditors, such as employees, than liquidation of the companies would have done.”

At the meeting, administrators pointed out that keeping the company trading was a better option than closing it down. Guvera, as reported in before, had debts of $13 million.

Guvera Australia, which handled the licences for streaming, was in the red for about $2 million. Of this, $900,000 was owed to music collection societies APRA AMCOS. Guvera Australia creditors would get back 24.8 cents in the dollar.

Guv Services, which hired its workers, owed over $10.5 million. $10 million of this was to the Australian Tax Office. It offered creditors 6.8 cents to the dollar.

Other debtors included phone app developer NextFaze ($462,000), media agency Media Partners ($235,000) and PR firm Edelman ($34,000).

Two organisations that Guvera sponsored were also hit: Tennis Australia to the tune of $285,000 and Victoria Racing Club for $297,000.

According to the DOCAs, retrenched staff will get full payouts of $1.2 million including outstanding superannuation and redundancy leave.