Cricket app creditors facing loss

Troubled startup Crichq owes millions of dollars to its investors after it failed to make money from its cricket scoring app.

The Wellington-based firm, which claimed to record one in every 10 cricket balls bowled internationally, appeared to be taking the cricketing world by storm before its collapse in October.

In the first receivers’ report, it was revealed the company owes $1.4 million to creditors.

That figure excludes Singapore investment firm Tembusu, which invested US$10M (NZ$14.2M) in 2015. It is unclear how much Tembusu’s claim will be.

Receivers Neale Jackson and Brendon Gibson of Kordamentha said only some creditors would be paid following the sale of Crichq’s business and assets.

The company, which counts former Black Cap captain Stephen Fleming among its shareholders, launched in 2009 after developing a cloud-based scoring platform.

However, after eight years in business, it failed to raise enough money to stay afloat. Crichq’s balance sheet sits at $4.248m.

Last week, it was announced a group of New Zealand investors had bought the business and assets for an undisclosed sum.

The sale would enable receivers to pay back the company’s secured creditors, Adroy Capital and ANZ, which are owed $353,000 and $19,000 respectively.

Preferential claims from the Inland Revenue Department, and from the company’s 22 staff, total $274,000. To date, unsecured creditor claims total $300,000.

‘‘It is unlikely there will be funds available for distribution to unsecured creditors from the receivership,’’ the report said.

The company was a majority shareholder of two subsidiaries, Crichq UK and Crichq India, which are not in receivership.