Openn Negotiation - Case Update

John Bumbak and Richard Tucker of KordaMentha have provided a positive update on their administration of the Openn Group of Companies.

The Perth-based startup was founded in 2016 to develop an online sales tool that facilitates real-time negotiation of property for buyers, sellers and real estate agents. Parent company Openn Negotiation listed on the ASX in 2021.

Unfortunately, the companies entered voluntary administration in May 2024 after struggling to achieve profitability and an unsuccessful capital raise. We last wrote about the companies in June, when the administrators shared that they had received a DOCA proposal for the subsidiaries from Tribar and Final Offer, and one for parent Openn Negotiation from Benelong. The subsidiary DOCA provided for total consideration of $850,000 and the continued employment of five employees, while the Openn Negotiation DOCA provided for the compromise of certain related party debt and was conditional on the implementation of the subsidiary DOCA.

Now, the administrators have advised that the conditions precedent in the DOCA have been satisfied and the DOCA effectuated on 17 January 2025. A creditors’ trust has been formed, and the administrators will proceed to adjudicate creditor claims and subsequently make distributions out of the trust.

In addition, the administrators have identified a potential pre-appointment research and development tax refund from the ATO for the year ended 30 June 2024. They are working with former directors and tax accountants to finalise and submit the claim. They have not disclosed the quantum of the potential refund, but have described it and the possible increase in the return to creditors as “significant”. The administrators do not intend to declare a dividend until the outcome of the claim is known.

Read the most recent update here.