PledgeMusic Update, July 31, 2019
(Additional info added August 1st, 2019 below)
I wanted to let you know that my volunteer role at PledgeMusic has officially ended now that the company has been filed with the court in the UK. This means that a judge made the order for liquidation of the company this morning and that the company’s affairs will be turned over to the Official Receiver and that the directors who were running the company no longer have power to act on behalf of the company.
This was not the route that I personally wanted for PledgeMusic and I wanted you to know that the last line of the many options that I had to get a sale of the company in administration, was cut on the evening of the 28th of July by text. This was the last viable option that I personally had after all previous attempts failed.
I have enclosed a short paragraph on what an Official Receiver does, and I have let Pledge’s council know that all of the data has been backed up and that it will be made available as and when needed to the Official Receiver. This includes data on what artists are owed as creditors and any fan data that they might need.
I would have given anything to have found the company a home, and it breaks my heart that you artists and your fans, who did not deserve to be put in this situation in the first place, have been left without what should rightfully be yours. I will forever wonder if I could have done more in my limited role as a volunteer, and I wish that the company would have been more forthcoming with information. The vacuum created wild speculation and misinformation which ultimately, I believe hurt this process. We will never know.
I sincerely hope that the Official Receiver can find a buyer who will make right all of, or at least some of what is owed to you and I will make every attempt to help that effort should it be asked for.
I will look to get next steps put on the website as soon as I have them from the Official Receiver and am once again deeply sorry that I couldn’t pull off a sale which was always the preferred and best path for all involved.
ADDED August 1st in response to comments:
Pledge pursued a range of sale options with a basic hierarchy to try to achieve the best outcome for the creditors. The first was a strategic trade sale to keep the company afloat and bring all artists and creditors up to date with payments. Once it became clear that this could not be achieved we pursued a pre-packaged administration sale which is generally recognized to achieve more for creditors than a liquidation. In order for an administration to be successful any sale would have needed to generate a minimum price and although we were in contact with several interested parties, ultimately none offered that price and so we were unfortunately unable to appoint an administrator.
The final and least desired option was to place the company into liquidation which was done on the 31st of July. The papers for the liquidation were filed in June, while we were still attempting to achieve an administration, so that no unnecessary delays occurred if the administration route fell though. If we had managed to negotiate an administration sale and appointed an administrator then the liquidation application could have been suspended. The liquidation order means that the company and all its assets will be controlled by the Official Receiver who, as part of their standard duties, investigates the causes of the insolvency just as an administrator would have done if appointed.
“The Official Receiver becomes the liquidator until and unless the creditors appoint an insolvency practitioner as liquidator. The Official Receiver is a civil servant and an officer of the court. The liquidator (whether the Official Receiver or another appointed liquidator) takes control of the company’s assets and the powers of the company’s directors cease Any disposition of the company’s property by anyone other than the liquidator is void.
The Official Receiver will advertise the fact of the winding up and notify the Registrar of Companies that the company is in liquidation. The Official Receiver may require the directors of the company to prepare a statement of affairs, including details of the company’s assets, debts and liabilities, and any other information required. The Official Receiver has a duty to send a report to creditors and contributories in respect of the winding up and the state of the company’s affairs.
The Official Receiver will contact all known creditors inviting them to submit a proof of debt with details of the amount they are owed by the company, and any supporting evidence.”
P.S. This is modified from a note that was sent to artists and managers with whom I was in contact through out this 7 month process earlier today. I had not intended to publish it, but since it was leaked in a screen shot earlier on Twitter I felt that it was best to have it from me.