Quickflix still has HBO backing
December 3, 2012
Australia’s Quickflix has confirmed the “full support” of its biggest financial backer, HBO, and denied that the US film studio could redeem a $10 million investment.
In a statement issued to the ASX, Quickflix said: “Quickflix confirms that the Board and management have the full support of its investor, HBO, to execute the restructuring plan already advised to the ASX.”
HBO holds about 86 million redeemable, convertible preference shares in Quickflix as part of a A$10 million investment made in February.
In November, the online film company was hit by the departure of CEO Chris Taylor, and three board of its four board directors including HBO representative Henry McGee, deputy chairman Justin Milne and company secretary Susan Hunter.
Quickflix rejected the denied reports that the board exodus could enable HBO to force it to repay its $10 million investment by the end of the year.
“Recent changes to the Quickflix Board do not constitute a liquidation event and the company confirms it has since received HBO’s acknowledgement that even if such a right existed it would not enforce it,” the company said in the statement.