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FTX implosion could affect 'more than one million' investors
Bankruptcy documents filed by FTX indicate that it currently faces more than 100,000 creditors, a number that could expand to over one million.
MegaBots calls it quits, puts battle robots on eBay
The era of giant battle robots appears to be over... although you might have a chance to bring it back. MegaBots has gone bankrupt after once again running out of money, and it's auctioning its 16-foot-tall Eagle Prime robot on eBay as part of the shutdown. It's a fully functional bot that even includes weapon attachments, CAD files and a shipping container full of parts, and the only real damages are its battle scars and some worn-down plastic pads. The real challenges are the support costs, as MegaBots and its co-founder Matt Oehrlein explained.
Mars One is dead
The company that aimed to put humanity on the red planet has met an unfortunate, but wholly-expected end. Mars One Ventures, the for-profit arm of the Mars One mission was declared bankrupt back in January, but wasn't reported until a keen-eyed Redditor (and a Swiss newspaper) found the listing. It was the brainchild of Dutch entrepreneur Bas Lansdorp, previously the founder of green energy company Ampyx Power. Lansdorp's aim was to start a company that could colonize one of our nearest neighbors.
UK Android upstart Wileyfox goes into administration
When UK phone maker Wileyfox burst onto the smartphone scene in August 2015, the company positioned itself as a small company that operated on small margins, with a plan to sell powerful but low-cost Android handsets. Its first two phones -- the Swift and the Storm -- delivered on that promise, earning favourable reviews for their premium design and impressive spec sheet. The company's next releases, however, didn't fare as well. It was forced to ditch the Cyanogen operating system and build its own Android platform, which ultimately led to it offering reduced prices if you didn't mind putting up with lockscreen ads.
E-bike company blames Apple poaching for its demise
When promising EV company Mission Motorcycles went bankrupt last month, it said that "we have not earned any cash (or) revenue of any kind." However, it's now putting part of the blame on Apple, claiming that it poached several of its top engineers at a critical time. Mission told Reuters that an investor withdrew crucial funding after two of its key engineers left for Apple, and the company ran out of cash shortly afterwards. "Mission had a great group of of engineers... Apple knew that -- they wanted it, and they went and got it," said CEO Derek Kaufman.
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.
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.
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.
Colonial Marines co-dev TimeGate files for bankruptcy protection
Section 8 developer and Aliens: Colonial Marines co-developer TimeGate Studios has filed for bankruptcy protection in the Texas Southern Bankruptcy Court, revealing that it owes its creditors between $10 million and $50 million in debt. Court documents note that TimeGate seeks protection from creditors while it reexamines its finances, Polygon reports. Currently, the company owes large, unspecified amounts to partners such as Epic Games, Agora Games and DJ2 Entertainment. The petition names nearly 50 creditors in all. TimeGate recently lost an appeal in its long-running legal battle with publisher SouthPeak Interactive, potentially owing $7.35 million in damages and losing its rights to the Section 8 intellectual property. Aliens: Colonial Marines, which TimeGate developed in partnership with Gearbox Software, is the subject of an ongoing class action lawsuit. TimeGate's current project, the minimalist free-to-play shooter Minimum, was announced in April.
Atari files for bankruptcy, hopes to survive by selling off Pong and other assets
Atari Inc. has filed for bankruptcy protection, looking to separate from its not-so-profitable French owners and pitch for independent funding. In the process, the elder statesman of gaming has secured $5.25 million of debtor-in-possession financing and will aim to sell assets, including its famous logo (which is already licensed out) and games like Pong, Asteroid and Tempest, in the next 90 to 120 days. In the last few years, Atari Inc. has shifted its focus from traditional retail gaming to digital titles and licensing, with mobile platforms proving especially lucrative for the parent company, Atari SA. The gaming arm is aiming for a return to former glory and, it hopes, the chance to go another 40 years. [Photo Credit: Marc Grimm]
HMV goes bankrupt after 91 years in the disc-selling business
The first time we mentioned HMV on Engadget was back in 2009, when the British retailer discounted the PSP Go -- ironically, one of the earliest devices to do away with disc-shaped media. As the picture above shows though, HMV's history goes back much further than that. Its first store opened in 1921 under an elaborate neon sign featuring the company's emblem of a dog listening to a gramophone beneath the words "His Master's Voice." Fast forward to today and the old-school seller has suffered gravely from the same online shift that has affected many others. It has called in administrators after failing to negotiate new terms over its bank debt, and unless a buyer steps up to take over the chain's 240 stores then as many as 4,350 people will be let go. According to Metro, the many HMV gift vouchers that would have been given and received over Christmas are now effectively "worthless." On the other hand, the British personal finance guru Martin Lewis reckons gift vouchers shouldn't be thrown away as they may be redeemable one day, or there may be a chargeback option if they were purchased with a credit card. [Image credit: London Express / Getty Images]
A123 Systems becomes America's latest EV battery maker to file for bankruptcy
Having been riddled with setbacks, including a major recall of faulty batteries supplied to Fisker Automotive, Michigan's favorite EV battery maker A123 Systems has filed for bankruptcy. It has also announced the sale of its main business units to rival Johnson Controls in a deal pegged at $125 million -- a sad fraction of the billion dollars it raised since it launched in 2001 (not least from government grants). It seems that neither fresh lithium ion innovations nor a potential deal with Chinese investors were able to keep the company out of the red, which leaves A123 on the road to nowhere -- right behind that other DoE-sponsored hopeful, Ener1.
38 Studios assets to be auctioned off in October
After a series of misfortunes, 38 Studios closed down last May and then filed for bankruptcy in June. Next month, the assets of the company that was working on the MMO known as Project Copernicus will be auctioned off. The auctions -- scheduled for October 16th and the 23rd -- will include office furniture and equipment, TVs, audio recording equipment, graphic design and animation equipment, computers, servers, and more. Currently listed in the assets are XBox 360 Development Kits, which Microsoft is requesting be removed since they are the property of Microsoft and not 38 Studios.
Artega fails to sell auto business, files for bankruptcy
As things seem to be incredibly promising at Tesla Motors' California headquarters, the situation for a competitor on the other side of the world is growing quite grim. Artega, which reached our hearts at the Geneva Motor Show just last year with its beautiful all-electric SE sports car, has filed for bankruptcy after failing to sell the company to "an Asian investor." Meanwhile, Artega will continue the search for business partners, and will keep running its German operation with 34 employees. The news is disappointing to say the least, especially with Tesla's Roadster dropping from production in 2011. Hit up the source link below for a (German-language) explanation, directly from Artega.
Kodak sues Apple for allegedly interfering with patent sales, has little nostalgia for your QuickTake
Kodak may have recently obtained clearance to sell some patents and help dig itself out of bankruptcy, but it wants to be extra-certain Apple is nowhere near potential buyers if a deal goes down. The former camera maker is suing Apple in hopes of making the former collaborator drop challenges to the ownership of 10 imaging patents from the early 1990s, when the two were still buddy-buddy enough to design the QuickTake camera line together. Claims by Apple and patent transfer recipient FlashPoint Technology are purportedly just attempts to stall any patent sale as long as possible and spook buyers away, forcing Kodak to make some hard decisions about its own lawsuits. That's not to say Kodak is a doe-eyed innocent here: Apple has accused Kodak of trying to sweep any patent disputes under the rug with bankruptcy as the pretext. Although the lawsuit is just one part of a larger story, it could more definitively answer whether or not Kodak has enough bullets left in its patent gun. [Image credit: Mikhail Shcherbakov, Flickr]
38 Studios declares bankruptcy, law enforcement investigating [Updated]
38 Studios, in a move surprising absolutely no one, has declared bankruptcy. This report comes hot on the heels of the news that the Project Copernicus developer has laid off all of its employees and sold Big Huge Games. In addition to covering the bankruptcy, the Providence Journal revealed that "state and federal authorities have launched an investigation into [the company]." State police Col. Steven G. O'Donnell states that the inquiry is taking place "to investigate activities that have recently come to light at 38 Studios." According to the Journal, these activities include taking out loans totaling $8.5 million US "based on state film tax credits that had not yet been issued." Things are looking pretty grim for Curt Schilling and his studio, but we'll just have to stay tuned to see how the rest of this plays out. [Update: Our sister site Joystiq reports that the Rhode Island governor has stated, "We are going to do everything possible to maximize return on our investment [...] Taxpayers in Rhode Island can have full confidence that if there's a penny that we can get, or a nickle or a dime, we'll get it." The company is suspected to be worth "tens of millions of dollars."]
ITC says again that Apple and RIM don't violate Kodak patent
Kodak hasn't caught a break lately, and that trend isn't easing up any time soon with a second rejection arriving in its main International Trade Commission (ITC) patent dispute with Apple and RIM. Despite having had its case remanded after a loss last year, Kodak is once more being told that BlackBerrys and iPhones don't violate a patent on previewing photos. The one violation was rendered moot through "obviousness," according to administrative law judge Thomas Pender. It's still an initial ruling, and Kodak is trying to put a positive light on the situation -- it's "pleased" there's still an infringement, even if the patent claim is invalid -- but the patent wars aren't looking good for a photography company that has already had to give up cameras to have a chance of staying afloat. Most of Kodak's hope, then, will be pinned on a second wave of ITC disputes that might stand a better chance of putting at least Apple's feet to the fire.
LightSquared officially files for Chapter 11 bankruptcy
As expected, May 14th is indeed a dark day for LightSquared. The company has just filed paperwork in order to initiate Chapter 11 bankruptcy proceedings in Manhattan's US Bankruptcy Court, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone's baby looks weaker than ever. With the Sprint tie-up now void, and over $1.6 billion in debt, there's probably not too many places for LS to turn. The primary hurdle -- one it never could seem to overcome -- was the FCC's outright refusal to believe any of the company's mitigation proposals in relation to GPS interference issues. Despite "profoundly disagreeing" and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone's guess, but it won't be a quiet fall from grace, we're surmising.
WSJ: LightSquared 'preparing' for bankruptcy protection filing, final decision coming tomorrow
Can't say it's striking us as any sort of surprise, but the seemingly destined-to-fail LightSquared just might be out of options. After getting a high-five from Sprint and plenty of attention for its initiatives in bringing yet another wireless option to America, those blasted GPS interference issues (or "supposed" issues, depending on who you ask) eventually became too much to overcome. According to a breaking report out of The Wall Street Journal, Philip Falcone's venture is seriously teetering on the edge of bankruptcy, as "negotiations with lenders to avoid a potential default faltered," according to the ever-present "people familiar with the matter." Purportedly, the two sides have until 5PM tomorrow to strike a deal that'll keep the firm out of bankruptcy court (if you'll recall, it owes over $1.6 billion dollars to various entities), but given just how far apart these sides remain, its fate seems all but sealed. We'll be keeping an ear to the ground for more, but don't go placing bets on yet another debt-term violation waiver.
Kodak moves to block Apple's latest patent suit from proceeding in federal district court
In a move that's sure to surprise no one, Kodak is fighting Apple's latest round of patent litigation -- a suit that would force Kodak to pause plans to sell up to $2.6 billion in digital imaging patents as a condition of its bankruptcy loan. In documents filed late last week, Kodak argued the dispute should be heard by the same bankruptcy court that's already overseeing its insolvency proceedings. In fact, Kodak's bankruptcy filing back in January caused all pending litigation (from Apple and RIM, among others) to come to a screeching halt, but Apple is nonetheless pushing for a reboot, arguing it's the owner of "a number of valuable patents," including one that could be lost if that planned $2 billion sale goes through. So where might this legal catfight take place? A bankruptcy judge is expected to hear arguments from both sides on Thursday.
