The Supreme Court of Western Australia has given a reprieve from closure to Quickflix, allowing the streaming service to extend the date of its second meeting of creditors until October 21.
Administrator Richard Hughes said that the company had approached the court for the extension to allow it to “seek proposals from parties interested in the purchase of the company’s business and/or recapitalisation of the company”.
Hughes added that he does not believe Quickflix will need the entire full period extension, and that the intention is to convene the second meeting of creditors as soon as possible.
The delay now means that stakeholders in the company won’t know if their shares are worth anything for several more months now.
Earlier this month, Quickflix put up a for sale notice of the company’s assets, including the 900,000 names in its marketing database as well as the tens of thousands of DVDs and Blu-rays located in its Western Sydney warehouse.
Quickflix is currently in a trading halt, with $659,000 cash on hand and a market capitalisation of $2.22 million.
The Perth-based streaming service, founded 12 years ago by CEO Stephen Langsford, last month appointed Ferrier Hodgson as administrators and blamed Channel 9 and Fairfax for its demise.
Stan Entertainment, which is owned by Nine Entertainment and Fairfax Media, held redeemable preference shares in Quickflix, and was often a barrier for the company to raise new capital.
“Despite Quickflix being first to the streaming market and holding a leadership position in 2014, ongoing growth has required capital for continued investment in content and marketing,” the company said.
“Neither Nine Entertainment nor Stan have ever participated in any capital raisings to assist Quickflix’s growth and its ability to raise capital from any source has been constrained.”