Last week the company removed controversial chief executive Darren Herft, replacing him with co-founder Claes Loberg for the interim.

The administration of these subsidiaries, Guvera Australia and Guv Services, is being managed by Deloitte, which has issued a deed of company arrangement.

Mr Herft, while no longer serving as chief executive, is remaining on the board of Guvera.

The music streaming service is in the process of raising up to $20 million and in a private placement memorandum issued to shareholders earlier this week the company said that it had successfully raised $3.5 million from "a number of Guvera's largest shareholders" and an additional $1.2 million from another 100 shareholders.

Guvera co-founders Claes Loberg and Darren Herft. Wayne Taylor

Guvera has about 3000 shareholders and has raised $185 million to date, predominantly through AMMA Private Equity's network of accounting firms, some of which sources told The Australian Financial Review had received kickbacks when clients invested in the company.

The private placement memorandum also revealed that Guvera was continuing to evaluate opportunities in other emerging markets such as the Philippines, Vietnam and China.

It also said that Guvera had placed the company's subsidiaries in Peru, Mexico, the United States, Finland and Singapore in administration or liquidation.


The business has also managed to reduce its cash burn to $1.7 million per month, down from $5-6 million, and that creditor plans had been negotiated to repay debts owed to music labels, hosting partners and other suppliers.

At the first creditors meeting of the subsidiaries under administration, former Guvera employees told The Australian Financial Review the company had not paid employer superannuation contributions for as long as two years.

About 80 staff members were said to be owed about $467,000, at the time, but this did not take into account all the superannuation and redundancy entitlements staff were owed. In total the subsidiaries had amounted debts of about $15 million.

"The entire time I worked there I received payslips that recorded my super was being deducted. But it turns out none of it was ever actually paid into my super fund," said one former employee who asked not to be named at the meeting.

"Some of the other guys are now finding out that their super hasn't been paid for more than two years."

These claims were denied by a spokesperson for Mr Herft at the time.

The updated memorandum also stated that staff wages had been paid in full as of June 30, thanks to a $1 million cash contribution from a director which was not named.

Mr Loberg, who has relocated to Jakarta and Mumbai, would not speak to The Australian Financial Review on Friday, despite repeated requests for an interview, but the company said in a statement that its headquarters and tech hub would remain in Queensland, despite the closure of the local streaming business.