Blue Sky is bidding farewell to its chief executive, after a strategic assessment determined the role "is no longer required".
Joel Cann left the organisation effective Friday, less than two months after he joined the company. Cann joined from property investment manager Aspen Group.
"Blue Sky Alternative Investments Limited (Administrators Appointed) (Receivers and Managers Appointed) (ASX:BLA) ('the company') today announced that following a strategic assessment, the role of the chief executive officer is no longer required and accordingly Mr Joel Cann left the organisation effective Friday, 7 June 2019," Blue Sky said in company filings this morning.
On June 4, Robert Kaye resigned as a director of the company.
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Today's announcement comes after Blue Sky entered receivership on May 20, as its financier exercised its rights after Blue Sky breached a term on a loan.
In September last year, Blue Sky borrowed $50 million in a convertible note facility from Oaktree Capital Management.
As a part of the transaction, Oaktree set up terms or covenants which required Blue Sky to maintain a minimum cash balance, minimum cash recurring EBITDA, minimum net tangible assets and minimum annual capex.
These were to be measured quarterly. Blue Sky met them for the December quarter but on May 9 said it was in breach of the minimum recurring cash EBITDA covenant as at March 31 and it was talking to Oaktree to vary or restructure the covenants.
Oaktree Capital Management has appointed restructuring specialist KordaMentha's Mark Korda and Jarrod Villani as the receivers and managers, and Pilot Partners' Bradley Hellen and Nigel Markey as voluntary administrators for Blue Sky Alternative Investments Limited (ASX: BLA).
This did not extend to Blue Sky Alternative Access Fund (ASX: BAF) or other subsidiaries. BLA was suspended from trading on the ASX following the announcements.
"The appointment follows a period of significant instability and uncertainty for all stakeholders, including further commentary regarding possible class actions, turnover of senior corporate executives and departure of certain limited partners," the May 20 release said.
"There is considerable work to be undertaken in the immediate future. Oaktree, KordaMentha and management are all united and committed to satisfying the business and its clients' immediate needs."
Blue Sky had $2.8 billion in fee earning assets under management at 31 March 2019.
It has about 77.7 million shares on issue and a market cap of $14.38 billion.
BLA's share price fell more than 90% since the start of the year to May 17.