CREDITORS in struggling Internet business Chrome Global have agreed to a proposal from a syndicate led by PPR Australia to take over the business.Chrome slipped into voluntary administration in October, citing a downturn in sales revenue and a projected weaker sales cycle.PPR and Singapore-based Tian Li Holdings have entered into a deed of arrangement to give $300,000 plus the cash the company had, its debtors and some investments to a trust fund so Chrome’s administrator Brian McMaster of Ernst & Youngcan pay out its creditors.Mr McMaster said those creditors were mostly the company’s staff.“The company should be released from administration next week,” he said.PPR will be responsible for managing Chrome until a shareholder meeting can be arranged. That is likely to be held in mid to late January.As part of the deal, Mr McMaster will liquidate Chrome Web Development and Chrome Public Relations, which were shelf companies set up to support Chrome’s expansion plans.Ironically, Chrome went into administration just days before it was due to finalise a $600,000 deal to purchase the WA arm of PPR Australia. That would have brought it both PPR and its fellow WA public relations firm RHK, which PPR acquired.The merged firms were operating from Chrome’s Adelaide Terrace headquarters but remained independent of the IT firm.PPR managing director Paul Niardone said the acquisition was necessary for his business.“As a PR company we felt we had to be in the online space. The Internet is a communications tool and we’re a communications company,” Mr Niardone said.
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.