insolvency
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Musical instrument company Roli files for administration, will relaunch as Luminary
Roli, the modular musical instrument business co-owned by Pharrell Williams and Grimes, has entered administration in the UK and will relaunch as Luminary.
Former 'Dead Island 2' developer can't pay its bills
The situation with Dead Island 2 and developer Yager took another turn today as the company announced it's filing for insolvency. Yager Productions, the team formed to work on the zombie sequel, can't pay the money it owes to debtors. "At the moment, there are different options to be assessed while wages for employees have been secured for the upcoming months," a company statement reads. The filing is a direct result of being removed from Dead Island 2's development, managing director Timo Ullmann writes. Insolvency helps protect the company's staff and will allow "time to sort out the best options for reogranizing this entity," he says. The rest of Yager, including the team working on the sci-fi, ship-to-ship combat game Dreadnought are in the clear however and are "independent and remain unaffected" by today's news.
Mt. Gox gets its login page back, but only lets users check their Bitcoin balance
Wondering where your Bitcoins are? Looks like Mt. Gox is giving you an official way to check. The fallen Bitcoin exchange has updated its homepage with a sparse login screen, inviting users to sign in and check their wallet's balance -- with a caveat. "This balance confirmation service is provided on this site only for the convenience of all users," the site warns. "Confirming the balance on this site does not constitute a filing of rehabilitation claims under the civil rehabilitation procedure... ...and should also not be considered an acknowledgement by MtGox Co., Ltd. of the amount of any rehabilitation claims of users." That legalese is referring to Japan's Civil Rehabilitation Law and Mt. Gox's bankruptcy proceedings, which are counting the company's assets to suss out a liquidation value. Mt. Gox users with Bitcoin stuck in limbo may eventually get a percentage of their wallet's worth based on the official totals. It's not a particularly heartening disclaimer, but at least it gives users a way to verify their online wallets without putting their accounts at risk.
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
The Game Archaeologist: Neocron and Neocron 2
It's the distant future. The high-tech battle armor you wear sharply contrasts with the ruins of civilization that you traverse. You spot an enemy and raise your pulse rifle, firing off shots as you strafe to cover. Technology hasn't solved the issue of war; it's just made it that much more bloody. PlanetSide 2? Nope -- this is Neocron, the quite-forgettable MMOFPS from the way-back era. I like to call it "that game with the most regrettable cover art in the history of video games," but that isn't quite as snappy. Going into this article, I have to admit that I previously knew absolutely nothing about Neocron other than the fact that it was a sci-fi MMO that vaguely reminded me of Anarchy Online. Oh, also the fact that nobody I know or perhaps ever will know played it. Is it just a myth? A practical joke to make us believe in a MMO phantom? Only sifting through layers of dust and grime would produce results, so I rolled up my sleeves and started digging.
Awesomenauts to launch as planned on PSN tomorrow, XBLA naut known [Update: XBLA now known!]
Awesomenauts will launch as scheduled on PSN in North America tomorrow, Sony announced via Twitter today. The future of Awesomenauts was thrown into disarray yesterday when news broke that its publisher, dtp entertainment, had filed for insolvency. Developer Ronimo said it was working with dtp to get Awesomenauts published.Awesomenauts will be free for PS Plus subscribers, Sony said. It was scheduled to launch on XBLA on May 2, but that release is still unconfirmed. We've contacted Microsoft for clarification.Update: Ronimo has confirmed to Joystiq that Awesomenauts will launch as scheduled on XBLA, on May 2. Microsoft has yet to respond, but this is heartening news for potential Awesomenauts fans everywhere.
Black Prophecy developer Reakktor Media on its last legs
The future is looking a bit hazy for Black Prophecy developer Reakktor Media, as reports indicate that the studio "has begun the insolvency process" and is scrambling for work in order to keep itself afloat. Speaking to GamesIndustry.biz, Reakktor Media's managing director Kirk Lenke stated that "[the studio is] in a position to accomplish basically anything [that] is played right now, even if we were focused in the recent times on multiplayer mobile gaming," which may indicate an interest in developing games outside of the MMO genre. Lenke also notes that the studio currently has a Diablo-esque sci-fi title in the early development stages. At any rate, we wish the best of luck to the folks at Reakktor Media. Even if things are looking pretty grim, here's to hoping that there's a silver lining in store for the studio.
Elpida files for bankruptcy protection as debts of $5.5 billion are revealed
DRAM Maker Elpida has petitioned for a corporate reorganization (the equivalent of Chapter 11 or Administration) as the company has revealed it is close to collapse. President Yukio Sakamoto is expected to resign as the scapegoat for the calamity as it files for protection at the Tokyo District Court. The company, founded in 1999 as NEC Hitachi Memory Inc. has produced DRAM Products since 2000. It founded three wholly-owned subsidiaries: Tera Probe, which conducted wafer probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and Rexchip Electronics Corp, which handled the front-end. After a blockbuster period of invention, a fall in prices and the global recession in 2006 forced the company to enter restructuring with a 30 billion Yen ($372.54 million) Government-backed loan. That swathe of cash was used to pump more money into investment and R&D, but the combination of strong Yen and the Thailand flooding has once again forced the company to come clean about its finances. It revealed today that it had debts of 448,033 million Yen, or $5.5 billion and without the protection of the court wouldn't last too much longer. Times of Japan points to the strength of Samsung's memory offerings as being a big contributor to Elpida's collapse, with president Sakamoto saying that DRAM is now as cheap as a "rice ball."
JoWooD recovery plan breaks down, closure appears imminent
Austrian game publisher JoWooD Entertainment has reached "game over," according to Austrian news site Boerse-Express. Negotiations with potential investors to recapitalize the debt-ridden publisher have fallen apart, signaling that the end is near. In order to pay back creditors, Game Informer notes, JoWooD could now attempt to sell off its game properties (recalling Midway's last gasp). A companion report on Boerse-Express adds that shares of the company have been suspended from trading and that the JoWooD Distribution Services subsidiary has also filed for bankruptcy. It's as yet unknown what will happen to DreamCatcher, JoWooD's Toronto-based subsidiary in charge of North American publishing operations. In early January, JoWooD filed for bankruptcy and announced plans to pursue capital reorganization. "The management board assumes that negotiations with creditors and possible investors can be positively conducted and finalized within 90 days," the company said at the time, "and thus continuation of the company can be assured." JoWooD was founded in 1995. The company is best known for publishing the Gothic series, in addition to the Painkiller and Spellforce games. JoWooD also published Torchlight in European territories. According to Boerse-Express, the company employs about 85 staff. In the first nine months of the current fiscal year, JoWooD reported a net loss of €25 million (about $36 million). [Pictured: Painkiller: Redemption (2011)]
Unnamed investor pulls its financial support for JoWooD
Things aren't looking too terribly bright for Vienna-based publisher JoWooD Productions. Helmut Platzgummer, the firm in charge of the struggling company's insolvency, revealed that an unnamed investor has pulled out its interest in the company. That's not necessarily a death knell -- according to the Austrian Independent, two other investors are interested in keeping the studio afloat. (We're guessing they're really big Painkiller fans.) Perplexingly, the publisher also announced that its upcoming expansion to Gothic 4, Fall of Setarrif, had been cancelled due to "legal uncertainty" with its own business development manager Stefan Berger. The publisher explained in a press release, "It's uncertain whether the game can be released onto the market in its current form." We hope that JoWooD can figure out some solutions for its problems, whether they be financial, legal or otherwise.
CDV vs SouthPeak legal battle gets much, much more complicated
When SouthPeak Games was ordered by a UK court to pay its distribution partner CDV a settlement earlier this year, rather than simply pay the settlement and move on, SouthPeak instead took a very interesting approach: buy up a company that's owed money by CDV and turn the tables. SouthPeak recently purchased the less-than-well-known dev studio IRP and filed a claim against CDV to the tune of €4.4 million ($6 million), money that CDV allegedly owes SouthPeak now that the legally embroiled publisher owns IRP, according to a Gamasutra report. But that's not all! CDV already filed for insolvency earlier this week, claiming it did so because SouthPeak "failed to pay a court-ordered settlement to CDV" -- the same court-ordered settlement that we mentioned in the first sentence of this very post. Still with us? Good! A statement released by CDV says that the company will remain "fully operational," and its various subsidiaries are unaffected by the insolvency filing. A Frankfurt, Germany court is said to be helping CDV sort through the financial back and forth. "The Administrator together with the management team is now proactively working on solutions to restructure the company and discussions with investors and potential purchasers are on-going." Given SouthPeak's rocky past with legal matters, we get the feeling this won't be the last we hear of this mess.
Reakktor Media financial woes resolved, full speed ahead for Black Prophecy
Those following the news surrounding development of sci-fi MMO Black Prophecy from Reakktor Media know there's been a significant hurdle to this title seeing the light of day -- the issue of insolvency. When parent company 10Tacle filed for insolvency, this adversely impacted subsidiary Reakktor Media and threatened continued development of Black Prophecy, which Reakktor addressed in an interview with Massively in April. It was announced today that their restructuring plan has been successful, and that their insolvency plan saved the jobs of all 36 employees at the company. Even better, Black Prophecy is on track for a release next year, according to the press statement released by the HERMANN law firm which oversaw the insolvency proceedings.
Maxdata runs aground, files for insolvency
Just a few months ago, we were all checking out Maxdata's Belinea s.book 1 Mini-Note and expecting huge, just huge things from the company. Fast forward to today, and you'll find those hopes and dreams essentially smashed. According a post on the outfit's website, it has "filed for insolvency proceedings at the Local Court in Essen due to pending illiquidity." Maxdata blames the "high pressure of competition and the immense fall in prices in the IT industry" as the primary reasons for its downfall, and it also makes note that a restructuring effort that launched in 2006 was ineffective (you think?). As it stands, management is now attempting to continue business "with the support of the insolvency administrator, securing as many jobs as possible" and retaining the Maxdata / Belinea brands. Good luck out there, it's a long climb back to the top base.[Thanks, Jari]
Bankrupt VK Mobile: down but not out
Would-be Kickflip owners, Helio employees, rejoice: VK's back in the ring for another round. After a July 7 scare that had the Korean manufacturer facing liquidation, a bankruptcy court has ruled that they can conveniently forget their debts and obligations, freeing up cash for things like -- oh, you know -- manufacturing of phones. It'll apparently take the court a couple months yet to decide exactly if and how VK will be allowed to continue its turnaround, a decision that will be based largely on how the defunct company fares in the interim. If they agree to cut it out with the SLVR knockoffs, we're all for a complete recovery.
