20/11/2017 - 15:51

Stargroup goes into receivership

20/11/2017 - 15:51

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ATM operator Stargroup has been placed in the hands of insolvency firm KordaMentha after the loss-making company was unable to complete a restructure of its $9.1 million debt.

Stargroup goes into receivership
Todd Zani resigned as chairman and managing director in October but has continued as chief executive.

ATM operator Stargroup has been placed in the hands of insolvency firm KordaMentha after the loss-making company was unable to complete a restructure of its $9.1 million debt.

Business News understands the ASX-listed company had been trying to raise fresh equity but was unable to do so.

It announced today that Richard Tucker and John Bumbak of KordaMentha Restucturing have been appointed as receivers and managers.

The receivership also applies to subsidiaries Star Payment Systems, Stargroup Investments, and Star ATM.

The receivers intend to trade on a business-as-usual basis, and will seek expressions of interest to sell or recapitalise the business.

The company called a trading halt on October 17 and its shares have been suspended since.

It chairman and managing director, Todd Zani, resigned from those roles on October 24, but has continued as chief executive.

Stargroup reported a loss of $5.8 million for the year to June 2017, on revenue of $8.3 million.

The loss reflected $4.2 million of administration expenses and $4.3 million of depreciation and amortisation costs.

The business had total liabilities of $13.6 million at June 30 and equity of $12.1 million.

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