Fuel VFX burned by currency woes

By Patrick Frater

Corporate News

Prestigious Sydney-based special effects company Fuel VFX has called in outside administrators, a result of mounting financial problems.

The company, which employs approximately 100 people, has supplied digital effects for Hollywood films including the recent Prometheus, Mission Impossible 4 and The Avengers (pictured, featuring the scene from the fight between Loki and Thor).

However, Fuel VFX says it has suffered from a slowdown in local work within Australia and the strength of the Australian dollar, which makes it uncompetitive when tendering for Hollywood work.

Administration firm, Jirsch Sutherland has been appointed to run the company while it tries to find a way out.

"The company's directors have advised Jirsch Sutherland that, being independent, the company has struggled to navigate the downturn in work that is affecting many visual effects companies worldwide at the moment. The voluntary administration process has been called on by the directors as a way of preserving and financially restructuring the business," the administrators said.

"In addition to the directors' financial restructuring attempts, the administrators are seeking expressions of interest in the business and assets of the company as a going concern."

A year ago Australia doubled the value of the post-production, digital and visual effects (PDV) rebate from 15% to 30% in an attempt to counter the effects of the strong Aussie dollar.

Earlier this month Australian facilities giant Omnilab announced that it is selling much of its creative and media division – including companies Iloura, Digital Pictures, Boffswana and Cornerpost units – to the Deluxe group.