SouthPeak gets $10 million loan while losing biggest moneymaker

Outside of looming legal battles and down year-over-year revenues, SouthPeak recently received a $10 million "asset-based line of credit" that extends until February 28, 2012, reports IndustryGamers, effectively replacing an $8 million line of credit previously secured. We're not quite sure what debtors will have to take from SouthPeak should the publisher not be able to repay the $10 million, though, as Majesco Entertainment apparently scooped up SP's biggest franchise in mid June, My Baby.

For what it's worth, SouthPeak chairman Terry Phillips said of the credit, "Securing this additional credit provides us with greater financial flexibility and presents a clear message to our investors that we are confident of our business prospects and growth opportunities over the near- and long-term." Here's hoping that Two Worlds 2 and Battle vs. Chess are enough to help the company get its feet back on the ground in the coming year.

This article was originally published on Joystiq.