Perth-based SVOD and DVD rental company Quickflix has gone into voluntary administration, after negotiations with Stan failed to reach an agreement.
Quickflix says the $11.7 million of redeemable preference shares Stan acquired from HBO in 2014 are stopping it from raising the capital it needs.
Nine / Fairfax-owned Stan has demanded either $4m in cash or $1.5 million and all Quickflix’s subscribers in exchange for restructuring the shares.
“Neither alternative presents a viable option for Quickflix. In the first instance Quickflix does not have the funds to make payments to Stan, nor does the company believe it can raise funds from investors for that purpose.
“Neither alternative leaves Quickflix in a position to fund its unsecured creditors nor with capital necessary to take the business forward.
“The company has no other realistic alternative but to appoint voluntary administrators.”
Ferrier Hodgson have been appointed as administrator.
Earlier this month the company cut 15% of its workforce and announced the closure of Sydney and Auckland offices as it prepared to raise a further $2m through an equity sale.