Formerly listed tech giant Big Un jumped to the heights of $840 million valuation in November last year, but as per the company’s administrators report based on the internal accounts, Big Un has been insolvent for more than a year.
"Given the above indicators, it appears the company and its controlled entities would have been insolvent from at least 1 July 2017," the report from the administrators led by Deloittes' Neil Cussen said.
In the employee’s capacity, Big Un’s co-founder and former chief executive Richard Evertz claimed $1.33 million in termination payment from his son Brandon Evertz’s company. But there does not seem to be enough money to pay him as a company’s report to Big Un’s administrators disclosed that the company had a negative cash balance just days prior the company collapsed into administration last month.
Whereas, the creditor’s report of this week said that the Big Un’s key solvency ratios went negative a year back. The report also read that company’s directors including the co-founder Brandon Evertz would be personally liable for any debts being incurred while insolvency.
The report indicated the dust settling under the white collar of Big Un’s Director. It said that Board of Directors may have breached their duties. However, ASIC’s investigation has already been started in May.
The video content provider Big Un was among the best performer on the ASX last year. Its shares surged as much high that it started charging $12000 for developing video packages for small businesses. The rise in shares was nearly 20-fold, making it to trade at the peak of $4.79 in November. But just after few months it all went upside down as in February the Big Un’s stock was suspended from trading on ASX following reports that fingered to the unsound financials of the business.
Later in July, the company eventually disclosed its December 2018 half-year results, reporting $52 million loss and negative cash flows while adhering to the change in accounting standard that demanded the company to report actual revenue from customers.
Adding to the last stroke, the securities of Big Un were called to be pulled down on ASX in August. The market announcement by Australian Securities Exchange dated 29 August 2018, declared the removal of Big Un securities from the official list on the failure of the company to pay annual listing fee to ASX in respect of the year ending 30 June 2019.
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