Beep beep beep: xTV hopes to reverse out of trouble
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xTV Networks has been suspended from the ASX since June 2016 — but its Australian directors are determined this isn’t the end of the road.
“What happened was the company’s US subsidiary, which was a US operating TV company, was subject to a bankruptcy action,” chairman Winton Willesee told Stockhead.
“That’s in the process of going through now, but the parent company in Australia doesn’t have sufficient business to trade on the ASX.”
But delisting would be “the end of the road” for shareholders, and Mr Willesee thinks he can still extract some good from the broken company.
“Where there’s life there’s hope.”
Mr Willesee hoped xTV (ASX:XTV) would make an acquisition or reverse takeover once the bankruptcy process was complete — but he didn’t know when that would be.
xTV Networks has just under two years to do a deal. The ASX compulsorily de-lists companies that have been in continuous suspension for three years.
Mr Willesee has been shepherding the company through the process since the beginning.
The board resigned after the company’s shares were suspended in June 2016. Mr Willesee joined in July.
A ‘hail Mary’ loan of $10 million in May from US Institutional investor Bergen Global Opportunity Fund wasn’t enough to stop bankruptcy processes starting in September.