Future of Australian radio group WorldAudio in jeopardy

An AUS$90 million rescue plan for failed Australian radio group WorldAudio is in jeopardy following the resignation of founder and director Andrew Thompson.

In a statement, the company said that Thompson had resigned on 7 July, and “there is no ready, willing and able person currently prepared to replace (him)”. The company, which went into administration on March 21, now has two directors less than the three required to comply with the Corporations Act.

It’s reported that, on the day of the resignation, a document was sent to creditors outlining the basic details of an agreement with two directors and an unnamed third party to acquire the “business and undertakings” of the group. The plan would also involve the group changing its name.
A creditors meeting was due to be held yesterday morning, but administrator Hall Chadwick decided to postpone it until a later date in August. Hall Chadwick said it had asked Mr Thompson to reconsider his resignation.

The Australian Communications and Media Authority also said some of WorldAudio’s licences do not meet commercial broadcasting requirements. The company spent more than $30 million funds setting up its Radio 2 network but struggled to find new funding. It bought dozens of cheap, low-power AM stations. It hoped that when radio went digital, it could convert its network to a digital licence. But, the Government decided the first licences would be granted to major groups, such as Austereo and Southern Cross Broadcasting, from 2009 and others could not acquire licences for six years.

Source: Media Network, Australian newspapers

Latest news stories..

• Get our news headlines for your website • Submit your news story