Deloittes, the administrators of the company which operated Soundwave up to and including Soundwave 2015 are seeking legal advice now that Soundwave 2016 has collapsed.
Creditors of 'ACN 127 870 866 Pty Ltd (Formerly Soundwave Festival Pty Ltd)', including Eyeball Media, which publishes this website, voted earlier this year to allow an AJ Maddah company 'Hounds Of Hell' (HOH) to run Soundwave 2016 to try and salvage the brand and pay a better dividend than if Soundwave Festival Pty Ltd were to be wound up.
A Deed Of Company Arrangement (DOCA) was entered into, whereby $600,000 was to be stumped up by HOH and related companies controlled by Maddah. These funds were to be supplemented with 50% of the profits from Soundwave 2016, and then paid to creditors. Depending on the success of Soundwave 2016, dividends to creditors were predicted to range from zero to 25c in the dollar.
In a letter to Eyeball Media (scenestr) and other creditors this afternoon, Deloittes said:
As per the DOCA, the Deed fund was to consist of $600,000 in contributions and from 50% of the profits of SW 2016. At the last meeting of creditors, creditors resolve to support the opportunity to continue the running of the SW 2016 to generate further funds for creditors of the Company. Unfortunately this is no longer the case.
Furthermore, the DOCA provides for the Company to hold a security interest in the proponents of the DOCA being HOH and Backline Hire Stage Systems Pty Ltd [Maddah companies]. In light of the cancellation of SW 2016 by HOH, the Deed Administrators will seek legal advice as to the ongoing security position the Company holds against these organisations.
Due to the Christmas and New Year office shutdown period, [the administrators] propose to hold a meeting of creditors on or around 20 January 2016. A formal notice for this meeting will be sent to creditors in the new year.
At the meeting, it is likely that creditors will be required to consider whether to place the Company into liquidation or to vary the terms of the DOCA should a new proposal be put forward.
Furthermore, the DOCA provides for the Company to hold a security interest in the proponents of the DOCA being HOH and Backline Hire Stage Systems Pty Ltd [Maddah companies]. In light of the cancellation of SW 2016 by HOH, the Deed Administrators will seek legal advice as to the ongoing security position the Company holds against these organisations.
Due to the Christmas and New Year office shutdown period, [the administrators] propose to hold a meeting of creditors on or around 20 January 2016. A formal notice for this meeting will be sent to creditors in the new year.
At the meeting, it is likely that creditors will be required to consider whether to place the Company into liquidation or to vary the terms of the DOCA should a new proposal be put forward.
