Music Technology Holdings Limited (09322581): administration
- Status
- Administration ended
- Administration began
- 2016-07-13
- Administrators
- Paul Steven Cooper, Paul Robert Appleton
- Administrators' firm
- FRP Advisory
- Incorporated
- 2014-11-21
- Location
- London
- Industry
- 90020 Support activities to performing arts
Why it went into administration
- Creditor pressure / legal action
- Property / lease costs
- Parent or group failure
From the administrators' statement
By the end of May 2016, the business had accrued substantial trade liabilities and given its lack of income, required further funding in order to satisfy its historic liabilities and ongoing working capital requirements. The Group approached Candy to provide bridging finance pending an expectation of a significant equity raise. In that regard, the Group had engaged an independent non-exclusive equity fund raiser to advise on investor relations and seek further investment
Candy subsequently entered into a convertible loan note to provide funding of £1.45m and £750,000 was advanced to the Group on 10 June 2016. The remainder, inter alia, was dependent on legally binding commitments to subscribe to a minimum of £4m in aggregate for shares in Holdings.
Given its position, Candy sought advice from David Rubin & Partners (“DRP”). Candy subsequently introduced a Director of the Company, Gareth Ingham, to DRP, and an initial meeting was held on 30 June 2016 at our offices Edward Parsons, Director of Crowdmix Holdings Limited, and also an employee at Candy, was present, together with Paul Jones, inhouse legal advisor for the Group
Administrators' statement of proposals (2016-09-14) · Companies House register