bankruptcy
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Apple fines companies $50 million for leaks
For a company that's obsessed with secrecy, it's no surprise to see that Apple imposes tight restrictions on what its suppliers can say. If your company leaks a product, or starts boasting about producing components for a future iOS device, then you'll be asked to pay a fine of no less than $50 million. That's chump change for a company like Samsung, but a fortune for smaller outfits that may produce only one or two small pieces. Speaking of which, this fact only emerged thanks to GT Advanced Technologies, which has just filed for Chapter 11 bankruptcy after deciding to close and sell-off its loss-making sapphire crystal manufacturing facilities.
Apple sapphire source GT Advanced Technologies wants to shutter plant
Re/Code is reporting that GT Advanced Technologies, the company Apple tapped to begin looking into making device screens from synthetic sapphire, is requesting court permission to close its plant in Arizona. This comes days after the surprise announcement that GT had filed for Chapter 11 bankruptcy protection. In its filing, GT noted that it had not been able to meet certain manufacturing operation and quality control metrics, causing Apple to withhold a US$139 million loan installment coming due in October. A total of $578 million had been floated by Apple to help GT build the new plant, and the stalled payment put the company into a untenable financial situation. Apple spokespersons have reiterated that the company will do all it can to save jobs in Arizona. Whether this means Apple will bail out GT or even purchase the plant itself is unknown.
Wonder Boy creator Westone filing for bankruptcy
Veteran Japanese developer Westone Bit Entertainment is facing bankruptcy after nearly 30 years of operation, Game Watch Impress reports (via Sega Nerds). After debuting in 1986 with its landmark arcade side-scroller Wonder Boy (later adapted for the 8-bit Nintendo Entertainment System as Hudson's Adventure Island), Westone went on to create the Monster World series, which saw several sequels across the Sega Master System, Sega Genesis, and TurboGrafx-16. The series was later compiled in the Japan-exclusive Monster World Complete Collection for the PlayStation 2, and eventually made its way to the Xbox 360 and PlayStation 3 with the 2012 launch of Sega Vintage Collection: Monster World. Westone has entered liquidation process and its website has since shuttered. Sega has issued no word regarding whether the closure will affect the continued sale of Sega Vintage Collection: Monster World. [Image: Sega / Westone]
Mt. Gox revival threatens customer's remaining Bitcoins, says CEO
First, one of the world's largest Bitcoin exchanges went dark, then it filed for bankruptcy, suffered further hacking attacks and even faced a lawsuit. Now Mark Karpelès, Mt. Gox's CEO, tells the Wall Street Journal that he's liquidating what's left of the company assets to make ends meet. "As the company head, my mission was to protect customers and employees," he said in the interview, his first public appearance since Mt. Gox collapsed. "I'm deeply sorry. I'm frustrated with myself." A court-appointed trustee now holds all of the exchange's remaining funds and assets, and is preparing to auction off domain names owned by the companies to help repay creditors and keep Tibanne -- Karpelès' other business -- alive. This includes selling bitcoins.com and akb.com. Karpelès didn't say if mtgox.com itself would be up for sale, but he is worried about its future.
Report: Crytek UK in trouble, staff leaving
More than 30 employees have left Crytek UK since work began on Homefront: The Revolution in 2011, Eurogamer reports. The high turnover is due to staff being paid late numerous times, and the list of those who've left includes key art, design and programming employees, the site says. Crytek UK Managing Director Karl Hilton is leaving his position for a different role in the company, he told Kotaku. This week, German magazine GameStar reported that Crytek was nearing bankruptcy. Crytek denied the claim: "Regardless of what some media are reporting, mostly based on a recent article published by GameStar, the information in those reports and in the GameStar article itself are rumors which Crytek deny. We continue to focus on the development and publishing of our upcoming titles Homefront: The Revolution, Hunt: Horrors of the Gilded Age, Arena of Fate, and Warface, as well as providing ongoing support for our CryEngine and its licensees." Homefront: The Revolution publisher Deep Silver has declined to comment on the situation. However, claims of trouble aren't contained to Crytek UK, Kotaku reports: Crytek's sequel to Xbox One launch game Ryse has been canceled, along with a slew of other games, including original prototypes. [Image: Deep Silver]
Mt. Gox Bitcoin exchange gets approval for US bankruptcy protection
The Mt. Gox Bitcoin exchange may still be reeling from the botnet discovery that ruined its business, but it just got a big reprieve. A US court has approved Mt. Gox's Chapter 15 bankruptcy protection, preventing creditors who sued the company from seizing any American assets (including servers) or pressing for evidence. The exchange can also chase down any funds it needs to repay its debts and, if necessary, file lawsuits of its own.
Mt. Gox faces liquidation as recovery plans scrapped
A Japanese court-appointed administrator is now in control of Mt. Gox following an unsuccessful attempt to save the business. The Bitcoin exchange filed for bankruptcy in February after losing 850,000 Bitcoins, though it later found around a quarter of them. That's still a $340 million loss at current rates, but the company recently went back online and still held out hope for a sale of the business. Now the most likely outcome is liquidation, as the court declared any rehabilitation unrealistic. It added that it would probably now investigate CEO Mark Karpeles too -- who yesterday told a US judge he was unwilling to travel to the states and answer questions. The next step is to appoint a trustee and divvy up whatever's left amongst creditors (and lawyers).
Mt. Gox found 200,000 Bitcoin ($116 million) in an old wallet, should check its pockets
In a bit of news that's familiar to anyone who ever put on an old jacket and found $20 in the pocket, embattled Bitcoin exchange Mt. Gox has made a fortuitous discovery. The company announced (PDF) in Japan that it found 200,000 Bitcoin (worth nearly $116 million at the moment) in a wallet from 2011 that it no longer used. That's less than a quarter of the 850,000 Bitcoins CEO Mark Karpeles reported were missing, but at the moment, at least it's something. According to its statement, the coins were moved to online wallets on the 7th, and then to offline wallets on the 14th and 15th. The mystery of what happened to Mt. Gox's funds is still far from solved, but between this news and reports of updated balances for account holders, it seems possible that there's something to be recovered from the shuttered exchange. Next up, removing all of the cushions from the sofa and pulling it away from the wall.
Popular Bitcoin exchange Mt. Gox files for bankruptcy protection (updated)
When the lights went out on Mt. Gox earlier this week, it wasn't entirely clear what was going on. Was the exchange about to be straightened out by another backer? What would happen to customers' coins? There were some big questions that needed answering. Today, according to the Wall Street Journal, we're at least enlightened to one of them, as it's reporting Mt. Gox is filing for bankruptcy protection. The news came from one of the firm's lawyers, speaking at a news conference in Tokyo. It was also revealed that Mt. Gox has debts currently to the tune of debt of about ¥6.5 billion ($63.6 million). The exchange had been pulled offline earlier this month amidst fears that it was possible to carry out fraudulent transactions. Understandably, this caused a great deal of frustration and anxiety for those with money and currency invested in the system. What this new development means for those customers still remains unclear, but for now at least, it's in the hands of official process. Update: Business Insider found a video posted by Japan's Asahi News Network (found after the break) of Mt. Gox's CEO Mark Karpeles speaking at that very news conference. In that video, he confesses that 850,000 Bitcoins -- which translates to around $480 million -- have disappeared from the exchange due to "weaknesses in the system."
Bitcoin exchange Mt. Gox goes dark (update: site issues cryptic statement, could still relaunch as Gox)
Less than a year ago when we took a long look at Bitcoin, exchange Mt. Gox reportedly handled some 80 percent of global traffic in the digital currency. Tonight however, the exchange's website is offline, all tweets have been deleted from its account, and customers are unsure what will happen to fiat currency (cash) or Bitcoin that it holds. There were signs of trouble before this however, as Mt. Gox hasn't been the leading Bitcoin exchange since late last year, and it halted customer withdrawals on February 7th. The Bitcoin Foundation, which advocates for the digital currency, announced that Mt. Gox CEO Mark Karpeles resigned on Sunday. A price index from digital currency tracker CoinDesk currently shows the value of Bitcoin has dropped $100 in 12 hours to $463, while Coinbase lists a buy price of $448. Prices for Bitcoin on Mt. Gox had fallen as low as $135, as the exchange issued a statement on the 17th that it had halted withdrawals while dealing with security issues. Rumors have flown about what's going on, and Reddit poster relliMmoT, who posted the screenshot above, reports trading halted at 8:59PM ET before the site went offline. Several other companies involved in digital currency including Coinbase, Blockchain.info, Circle, Kraken, Bitstamp.net and BTC China have issued a joint statement in response, decrying Mt. Gox's "tragic violation" of user trust. They're also promising to reassure customers and the public about their security, and to "lead the way" in consumer protection measures. Curiously, the statement originally referred to the exchange as insolvent (and still does on Circle), but that reference has been removed. According to Re/code a spokesman for the group stated that the troubled exchange has informed others that it will file for bankruptcy, but that can't be confirmed at this time. Update: Several Twitter users have noticed a change in Mt. Gox's previously DOA website. Instead of simply failing to load, as of 4AM ET or so, it has switched to a blank page with HTML indicating "put announce for mtgox acq here." Is someone about to step in and clean up the mess? If and when we hear something definitive, we will let you know. Update 2 (9AM ET): Coindesk says domain investor Andy Booth has confirmed the sale of the Gox.com domain to Mt. Gox CEO Mark Karpeles. This is particularly notable, because it lends credibility to an alleged pitch document originally posted by "two bit idiot" with an appeal to potential investors for relaunching Mt. Gox. According to the document (here and embedded after the break), the exchange has significantly more liabilities than assets while suffering from "massive robbery and poor Bitcoin accounting." Other than planning for a replacement CEO, it closes by pushing for a transition to "Gox," and offering limited withdrawals as it generates revenue to pay back stakeholders. Update 3 (11AM ET): Mt. Gox has released an official statement saying that it has closed all transactions as a precaution to protect the site and its users. Unfortunately, it's not entirely clear what the team is protecting users from. Perhaps its the volatility introduced by the domain changing hands or an impeding bankruptcy proceeding. Or, maybe, it's somehow related to the more advanced version of the Pony botnet that's been making the rounds -- but that seems unlikely. The entire statement is below. Dear MtGox Customers, In the event of recent news reports and the potential repercussions on MtGox's operations and the market, a decision was taken to close all transactions for the time being in order to protect the site and our users. We will be closely monitoring the situation and will react accordingly. Best regards, MtGox Team
UK retailer GAME forced to pay £3M in back rent fees
British video games retailer GAME has lost a legal case filed by its landlords, and has been ordered to pay £3 million in rent fees accrued during its administration (bankruptcy equivalent) period in 2012, Retail Week reports. GAME's landlords banded together last year in an attempt to recoup the retailer's missed rent payments, and the ruling sets a significant legal precedent. Under British law, administration often allows companies to avoid paying back rent fees incurred during insolvency. "GAME's exposure following this decision is limited to a one-off liability of £3 million which has already been accounted for," a company spokesperson said in a follow-up statement, via MCV. "The real ramification of this decision is, however, that it will have a significant financial impact on all landlords, tenants and insolvency practitioners involved in current and future business insolvencies in this country." GAME's administration in 2012 resulted in widespread employee job losses and the closure of its Australian division. A private investment firm purchased GAME afterward, ending its administration and saving 3,200 jobs across the retail sector. The decision follows GAME's recent retail expansion, during which the company unveiled a new store chain focused exclusively on used game trade-ins. GAME plans to rejoin the stock market this year. [Image: GAME]
Atari earns court approval to emerge from bankruptcy
Atari's Chapter 11 (reorganization) bankruptcy, announced in January and followed by auctions of its assets, is coming to its phoenix conclusion. The Wall Street Journal reports Atari has received court approval for its plan to rise from bankruptcy. The plan involves paying back the $3.8 million owed to bankruptcy lender Alden Global Capital. Once Atari is operating on its own, it'll also start paying $1.75 million to unsecured creditors over a stretch of three years. Those creditors are actually owed $10.3 million, but their agreement in the plan suggests that they're aware they'll probably never see that full sum again. It'll be interesting to see if the company can soar again, but we're pretty sure those E.T. cartridges will remain in their sandy slumber.
The end draws near for Blockbuster UK, 62 more stores closed
Blockbuster UK is likely to follow in the footsteps of the recently defunct US arm, after administrators announced 62 further store closures, with 427 employees laid off as a result. The DVD and game rental chain entered administration (a.k.a. bankruptcy) again earlier this year, and insolvency specialist Moorfields Corporate Recovery is struggling to find a buyer for what's left of the once major presence on the UK high street. "Unfortunately we have still not received any acceptable offers," reads Moorfields' statement. "So as a result we may be forced to close the remaining 91 stores affecting 808 employees." Blockbuster UK's tumultuous year, which has seen the company go into administration twice, over 400 stores close, and thousands of employees lose their jobs, will likely end with it finally being laid to rest. The store's demise leaves the country's high street games retail in a perilous state, with major players GAME and HMV still recovering from their own financial struggles from the year before.
Toshiba to buy OCZ's assets for $35 million, eyes solid-state supremacy
OCZ's memory technology won't fade into obscurity after all -- Toshiba has agreed to buy the ailing company's assets for $35 million through a bankruptcy auction. As long as the bid wins, Toshiba expects to acquire OCZ's solid-state drive businesses in January. The deal also supplies the financing that OCZ needs to fulfill customer orders during the transition. It's a quiet end for the once-popular storage brand, but the buyout is undoubtedly good news for Toshiba. The Japanese tech giant can now augment its SSD lineup with OCZ's controller chips and flash memory supply; if future Toshiba SSDs outperform their rivals, you'll know who to thank.
Rune Factory, Lufia developer Neverland Co. to file for bankruptcy
Rune Factory and Lufia series developer Neverland Co. has ceased operations and will file for bankruptcy soon, the studio revealed on its website. Siliconera reports that Neverland's statement cites recent "changes in the business environment" as one of the studio's difficulties. Attempts to secure funding for Neverland's future development have been unsuccessful. The news follows a statement in August from Yoshifumi Hashimoto, a producer with Rune Factory 4's publisher, Marvelous AQL. Weeks after its release, Hashimoto stated that RF4 had performed well enough to "greenlight a sequel." Hashimoto also posted on Marvelous AQL's blog for RF4 after Neverland announced its closure, teasing that while the publisher's next title will "remain a secret," the staff members are doing well.
OCZ declares bankruptcy, may sell its assets to Toshiba
OCZ dropped off the radar shortly into 2013 as it struggled to correct dodgy accounting and stem ongoing losses. Unfortunately, it couldn't turn things around quickly enough -- the one-time legend in memory technology has declared bankruptcy. That isn't necessarily the end of the story, though. Toshiba has offered to buy all of OCZ's assets as long as the ailing company maintains its value. The bankruptcy represents a sad (potential) end for a firm that was once synonymous with speedy RAM and SSDs, but there's a good chance that its work will live on in future products.
Fisker files for Bankruptcy, hopes selling company will restart Karma sales
The writing has been on the walls for awhile, but now the scrawlings read true: Fisker Automotive has filed for Chapter 11 bankruptcy. For almost a year, the company's been sliding down a slope of financial ruin. Production was halted, workers were furloughed, then laid off and the Department of Energy even seized $21 million from the company after becoming concerned it wouldn't be able to pay of its $192 million federal loan. The bankruptcy filing will help facilitate the company's sale to Hybrid Technology, an investor group that has agreed to buy the remainder of the DOE's original loan, now valued at $25 million. Hybrid says the deal is the first step to putting the Karma back into production (and back on the market), but notes that it still has a lot of work to do. "As we continue to examine Fisker's opportunities, we will be making decisions about the structure and footprint of the new business," a Hybrid spokeswoman told the Reuters. It'll likely take some time for the hybrid sports sedan to make it back to the showroom. Hopefully, it'll give the firm time to work out some of the original Karma's faults.
Blockbuster UK cuts 72 stores as search for buyer continues
Blockbuster UK faces 452 layoffs and 72 store closures, after company administrators announced "necessary" measures for the once-again bankrupt retail chain. Moorfield Corporate Recovery, the company tasked with finding another buyer for the struggling outlet, said it wasn't an easy decision to make ahead of the Christmas season. "We must reiterate that, as part of our attempts to turnaround the business, today's decision is necessary if parts of Blockbuster are to be saved and a buyer found," Moorfield said in a statement provided to Sky News. The cuts represent around a quarter of Blockbuster's employees and stores, removing another chunk of gaming's presence on the UK high street. Between them, GAME and HMV closed hundreds of stores and laid off thousands of employees after their own forays into administration last year. The news follows the announcement that Blockbuster's US arm will close all 300 stores and end its retail and mail DVD operations in the country by January 2014.
38 Studios IP auction moved to December
A planned intellectual property auction for shuttered Kingdoms of Amalur: Reckoning developer 38 Studios has been pushed back a month and is now set to commence in December, GameSpot reports. A specific date for the auction is not yet known. 38 Studios' court-appointed lawyer Richard Land previously called for a delay earlier this month, citing "greater than expected" demand from potential bidders. The upcoming auction will put merchandising rights and revenue for Kingdoms of Amalur up for bid, along with IP rights for the Big Huge Games properties Rise of Nations, Rise of Legends, and the Xbox Live Arcade version of Catan. 38 Studios declared bankruptcy in June of last year after missing scheduled loan repayments. A previous asset auction attracted more than 1,000 bidders, and brought in more than $650,000.
38 Studios asset auction may be delayed due to high demand
When companies die, their assets are sold to make back whatever money can be recovered. That's normal. But you wouldn't expect a great deal of interest in the intellectual property of a company that had worked on only two games and actually released just one of them. Apparently that expectation would be wrong; Richard Land, the attorney in charge of selling off 38 Studios' holdings, has requested that the IP auction be delayed due to greater interest than expected. For those of you who had forgotten the details, here's a recap: The sale of these assets are part of an attempt by the state of Rhode Island to recover some of the enormous losses when 38 Studios went bankrupt following a $75 million loan from the state. The auction was originally scheduled to take place November 13th to the 14th. What parties are interested in the IP remains to be seen, as do the offers that have supposedly been put on the table.
