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