Goldfields will keep cash in struggling Stargroup’s ATMs – if it pays $100K today
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Goldfields Money has agreed to continue supplying cash for the ATM network owned by embattled Stargroup — which went into receivership earlier this week.
Goldfields, a West Australian would-be digital bank (ASX:GMY), had supplied up to $30 million for the ATM network under a previous agreement. It would now supply up to $10 million — as long as a $100,000 upfront fee is paid today.
Goldfields — which now has about $6.5 million sitting in Stargroup’s ATMs — is also asking for additional fees to replace the revenue it would have earned under the previous $30 million facility.
The $6.5 million was “fully insured in the event of loss or theft… and [the company] does not consider that the appointment of the receivers and managers places these funds at risk in any way,” Goldfields told investors earlier.
Recovery of the $526,000 in fees “remains under discussion and a further update will be provided once these discussions are completed”.
“Goldfields Money expects the impact on the company from the appointment of receivers and managers to Stargroup and its subsidiaries to be minor,” the bank told investors.
Earlier this week Stargroup called in receivers for three subsidiaries — Star Payment Systems, Stargroup Investments and Star ATM — after five weeks of suspension from the ASX as it tried to raise money to recapitalise its debt.
Stargroup’s subsidiaries — now under the control of receiver KordaMentha — owe about $9.5 million in total, including $526,000 to Goldfields.
Stargroup also has a deal to roll out Bitcoin ATMs with DigitalX (ASX:DCC).
Goldfields itself has a lot going on right now.
It’s fending off a takeover bid from its largest shareholder, non-bank lender FirstMac, after attempting to rebrand as a digital bank caled ‘Bare Money’. Shareholders rejected the idea last month.