Gadfly Editorial Services, the Sydney-based publisher that was put up for sale last month,received an offer from Big Splash Media which was rejected.
As reported by Mumbrella, the offer valued the mastheads at $500,000, but was rejected by the administrator on the grounds that it could not quantify the likely outcome for all creditors.
Administrator RMG Partners is recommending a deed of company arrangement allowing Gadfly's present management to trade on, and pay creditors 10 cents in the dollar over 13 months.
Big Splash Media MD and publisher Peter Lynch said that he intends to persuade creditors to overturn the decision.
"We find it puzzling that offer was not accepted. We think we are the only bidders looking to buy Gadfly," he said.
"We believe our offer represents the best for the titles, the staff and the creditors because we have the expertise and capital to grow this business."
Gadfly has 25 journalists on staff and produces Luxury Travel Magazine, Australian Art Collector and Breeding and Racing Magazine.
Big Splash Media's stable of titles includes travel magazines for The Rotarians, the Brand Australia magazine Australia Unlimited and Carnival, the official magazine for the Australian Turf Club.
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