Just weeks after being placed into voluntary administration, Australian visual effects company Fuel VFX appears set to be sold.
Australian visual effects company Fuel VFX appears set to be sold, just weeks after being placed into voluntary administration, according to a report by The Register.
The visual effects house secured cornerstone work in Ridley Scott’s Prometheus, The Avengers, Mission Impossible and Iron Man 2 but was hit with a cash crisis stemming from a slowdown in local production activity.
All 80 Fuel VFX employees has been let go on the appointment of the administrators.
Administrators Jirsch Sutherland Partners said that while a number of salvage strategies had been canvassed, including a possible white knight investor, the most likely scenario was now the sale of the business or assets following a recent call for expressions of interest.
The first Fuel VFX creditor's meeting was held last week with the next meeting scheduled at the end of the month. The administrators have indicated that the company collapsed after an anticipated feature film production failed to materialize.
The identities of the potential buyers have yet to be named although Deluxe Australia, which recently acquired six Omnilab companies including visual effects house Iloura, has been suggested as a potential suitor.
Jennifer Wolfe is Director of News & Content at Animation World Network.