Fuel VFX likely to be sold: administrator
Struggling visual effects company Fuel VFX is likely to be sold within weeks, according to the administrator.
The respected company, which has contributed visual effects work to a range of high-profile films such as Prometheus and The Avengers, called in voluntary administrators Jirsch Sutherland on August 27 after suffering a cash crunch.
Jirsch Sutherland partner Andrew Spring said the accounting firm had also considered the possibility of an external 'angel' investor but a sale of the business or assets now appeared more likely after a recent call for expressions of interest.
“We’re finalising our negotiations with parties at the moment," he said.
The names of the interested parties have not been released. Deluxe Australia has been the most acquisitive local company in recent years, last month adding six Omnilab companies to its roster including visual effects house Iloura, which contributed half of the effects in hit film Ted.
The first Fuel VFX creditor's meeting was held yesterday, September 6, and a further meeting is scheduled to occur in about three weeks. There are a range of creditors, including employees, although the total amount owing has not been released.
Jirsch Sutherland had previously stood down all of the approximate 80 Fuel VFX employees upon appointment in an effort to plug the immediate cash flow problems. A small number of employees were brought back to finalise some remaining TV commercial work.
Fuel VFX's financial woes are understood to have been partially caused by at least one major feature film project which did not eventuate. It already had a number of staff ready to work on the project, which exacerbated its cash woes.
“Their revenue sources had essentially dried up from that feature length side of the business,” Spring said.