VIQ Australia heads for liquidation

VIQ Solutions’ Australian transcription businesses are expected to enter liquidation after an unsuccessful sale process and the final closure of operations, bringing to an end the court services provider’s administration four months after its collapse.

Robert Smith and Keith Crawford of McGrathNicol were appointed voluntary administrators of five VIQ Australian subsidiaries on 16 March 2026. In June, we reported that the administrators had abandoned hopes of a going-concern sale and begun an orderly wind-down after no bidder submitted a binding offer capable of completion.

The administrators have now formally recommended that creditors place the companies into liquidation at a second meeting scheduled for 29 July. No deed of company arrangement has been proposed, and the administrators do not expect to receive one. VIQ Australia ceased providing transcription services to all customers on 17 July, although residual billing, data-transfer and closure work remains underway.

In their latest report to creditors, the administrators describe how VIQ Australia had been a successful business for decades and what ultimately led to its downfall.

VIQ Australia had been a major provider of transcription and records-management services to courts, tribunals and law-enforcement agencies for more than 30 years. At the time of the appointment, it supported 20 core customers, employed approximately 240 staff and engaged about 270 contractors. Its customers included the Federal Court of Australia, the Federal Circuit and Family Court of Australia, state justice departments and police agencies.

The administrators continued trading because an immediate shutdown risked disrupting court and tribunal proceedings and destroying the value of outstanding work and receivables. Major customers provided approximately $3.8 million of support through temporary price increases, relief from penalties and abatements, and retainer arrangements. The funding allowed VIQ to continue servicing customers while a sale was pursued and later supported an orderly transition to replacement providers.

The sale campaign contacted approximately 130 potential buyers. Twenty-two signed confidentiality agreements, six submitted non-binding indicative offers and three delivered final proposals. One bidder advanced to confirmatory due diligence, customer engagement and negotiations, but no binding offer with acceptable conditions was received by the 29 May deadline.

The administrators estimate that the post-appointment trading period will produce a net surplus of between $2.4 million and $2.9 million, including the customer support. That recovery will largely be absorbed by administration, liquidation and professional costs, leaving limited funds for creditors.

Secured lender Beedie Investments, which has lodged a claim for approximately $30.3 million, is expected to recover between nil and 2 cents in the dollar. Employee priority claims are estimated at between $4 million and $4.2 million, with a projected return of 15 to 21 cents in the dollar before any amounts available through the federal Fair Entitlements Guarantee scheme.

Unsecured claims, excluding related-party debts, are estimated at between $1.3 million and $1.5 million. The administrators expect no dividend to unsecured creditors unless a liquidator identifies and successfully pursues additional recovery claims. Those claims include approximately $800,000 potentially owed to 745 customers for refunds relating to pre-administration transactions.

The report provides a fuller account of the causes behind VIQ Australia’s failure. The business generated revenue of approximately $35.2 million in fiscal 2024 and $33 million in fiscal 2025 but recorded EBITDA losses of $1.4 million and $3.1 million, respectively. Customer abatements and penalties increased from approximately $700,000 in 2024 to $2.5 million in 2025 as productivity and service-delivery problems worsened.

VIQ also became increasingly dependent on its Canadian parent for systems, management, funding and other support. A restructuring beginning in August 2025 eliminated or consolidated several senior Australian positions, including the heads of finance, operations, human resources, information technology and client experience. The administrators said the reduction in local management weakened oversight and contributed to operational disruption.

Those problems intensified after VIQ discovered in February that contractors working for India-based e24 Technologies had been given access to Australian court transcription work through the parent company’s NetScribe platform. Five contractor accounts had access and three individuals are understood to have performed transcription work. The accessible material included court audio and information normally contained in transcripts, although the underlying data remained stored in Australia.

The incident breached certain customer requirements, attracted parliamentary, regulatory and media scrutiny, and damaged customer confidence. Court Services Victoria and the NSW Reporting Services Branch stopped placing transcript orders, costing the business approximately $3.6 million in annual revenue, while tender opportunities were also affected.

The administrators concluded that the data incident contributed to VIQ Australia’s failure, alongside an unsustainable operating model, deteriorating relations between the parent and the workforce, inadequate local management and weaknesses in access controls, onboarding and workforce-clearance processes.

Their preliminary view is that the companies remained solvent until the parent withdrew financial and operational support immediately before the appointment. VIQ Australia was likely insolvent from at least 15 March, one day before the administration began. On that basis, the administrators consider a material insolvent-trading claim unlikely and have not identified any voidable transactions.

However, a liquidator may investigate whether VIQ Australia’s directors breached their statutory duties by failing to act with appropriate care and diligence. Relevant issues include their oversight of the 2025 restructuring, awareness of operational and access-control deficiencies, reliance on parent-company management and involvement in the response to the data incident. The administrators have confirmed that directors’ and officers’ insurance is in place, although they have not received a copy of the policy.

If appointed liquidators, the administrators also intend to seek court orders pooling the five companies. They said the entities operated as a single integrated business with shared employees, management, systems, funding and intercompany transactions, making a consolidated administration fairer and less costly than separate liquidations.

Read the administrators’ report here.