Quickflix finds a buyer in Karma Media Holdings

Administrators have hailed the $1.3m deal as the best outcome for Quickflix’s creditors, staff and customers.

Subscription video-on-demand (SVOD) provider Quickflix has found a new buyer, with US-based Karma Media Holdings set to take full control of the business that went into administration in April for $1.3 million.

The sale comes after Quickflix’s creditors approved a deed of company arrangement (DOCA) proposed by Karma Media. The arrangement will see Karma Media take control of the Quickflix business and its assets in exchange for payment of $1.3 million into a deed fund.

Deloitte’s Jason Tracy, who was appointed joint voluntary administrator in May, said the agreement offers the best outcome for Quickflix’s creditors, its staff and customers.

Karma Media will hold on to the majority of Quickflix’s employees, with those let go set to get outstanding entitlements in full.

Unsecured creditors will receive as much as 21.5 cent in the dollar, with services set to continue as normal for Quickflix’s customers.

Joint Voluntary Administrator, Jason Tracy said: “Quickflix has encountered corporate challenges and impediments in a highly competitive environment. As administrators we have been able to continue trading the business since our appointment, reduce costs, retain value, keep employing the majority of staff, and conduct a global sale process.

“Under new control, the Quickflix business will continue to trade, 24 employees will be retained, departing or already departed employees will receive all relevant entitlements, creditors will get a return and suppliers will have the option of trading with the continuing business.

“The result is a good outcome for stakeholders.”

The DOCA provisions are scheduled to be completed by early February 2017.