High-stakes drama as creditors vote to liquidate StrongRoom AI
A surprise court order gave investor EVP decisive voting power, leading creditors to reject a rescue bid and push StrongRoom AI into liquidation amid rising tensions.
Creditors have voted to liquidate StrongRoom AI, after investor EVP secured a court order recognising it as a $10 million creditor — a move that gave it decisive influence over the outcome and derailed a rival rescue plan led by fellow investor InterValley.
The high-stakes creditors meeting was not without last minute drama.
EVP’s surprise court order, secured on Wednesday, significantly strengthened its voting power in favour of liquidation. The order formally recognised EVP as a $10 million creditor, giving it substantial weight in the debt-weighted vote.
According to HLB Mann Judd's final creditors' report, seen by Capital Brief, EVP supported liquidation because it preserved the firm’s ability to pursue the company’s founders through the courts, rather than accepting limited recovery under a rescue deal.
Following EVP’s support for liquidation — and the growing likelihood that InterValley’s proposed deed of company arrangement (DOCA) would fail — InterValley submitted a competing asset purchase offer against the current $3 million bid by Joe Zhou.
