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Amp'd in death throes, files to sell off assets
Maybe it was Verizon's most recent in-court request to stop serving up costly airwaves for which it couldn't pay, maybe it was the cold reality that it'll allegedly have a mere $9,000 in the bank as of next Monday -- but at any rate, Amp'd Mobile appears ready to throw in the towel. The Verizon-serviced MVNO today filed with a bankruptcy judge to sell substantially all of its assets at auction after discovering that it was unable to line up debtor-in-possession financing, likely setting the stage for a full shutdown in the next few days. After launching less than two years ago to considerable fanfare and burning through a healthy $360 million, it's pretty shocking to see it all go down with such a whimper -- but hey, if you're looking to pick up a Q on the cheap -- that may or may not work on any other network, that is -- this may just be your chance.
Verizon to court: Amp'd can't pay, we want out
Yeah, the court system may have given Amp'd a short stay of execution, but the troubled MVNO is far from being out of the woods. The latest chapter in Amp'd's bankruptcy saga has Verizon all fired up over its inability (or inaction) to get a loan lined up, all the while racking up some $370,000 in connection charges daily on Verizon's backbone. For anyone keeping count, that means Amp'd now owes Verizon something on the order of $56.6 milion, and the $9,000 (yes, nine thousand dollars) in Amp'd's coffers aren't quite going to cover the damage. In a court filing demanding that it be let out of its end of the well-breached agreement, Verizon says that it shouldn't be forced to participate as an "unwilling gambler" while Amp'd struggles to get back on its feet. Of course, if the plug does get pulled, it's an instant Amp'd death sentence -- so if you happen to be an Amp'd subscriber and your line goes dead, well, you can probably figure out how the court has ruled.[Via mocoNews]
Amp'd regains connectivity, drops lawsuit against Verizon
Apparently, it would just be far too easy for Amp'd to bow out of the fledgling MVNO realm after filing for bankruptcy, as the company has recently reached an agreement with Verizon Wireless that enables it to use The Network in exchange for Amp'd dropping its lawsuit. The suit was reportedly filed after Verizon moved to kick the Los Angeles-based Amp'd off its network, but we can't exactly blame Verizon for being quite perturbed after not receiving $33 million in payments. Of course, we're sure this spat is far from finished, but the case will press on next week while Amp'd customers can once again intrepidly chat away on Verizon's equipment -- for the time being, at least.[Via mocoNews]
Judge lets Amp'd tap $7.5 million loan
Bankrupt Amp'd Mobile has received an ever-so-brief stay of execution this week, thanks in no small part to the federal court system. The US Bankruptcy Court in Delaware has ruled that the MVNO has permission to use $7.5 million in cash from its largest creditor (and underlying service provider) Verizon, a sum Verizon was ultimately hoping to avoid paying out. $2.45 million of that loan will be need be held in reserve, but the remainder should be enough to keep Amp'd up and running until June 25. What'll become of the carrier after Monday, though, remains to be seen, pending the result of a lawsuit asking the court to prevent Verizon from shutting off its service altogether.[Via mocoNews]
Verizon threatens to shut off Amp'd's airwaves
It appears to be nothing more than a little playful legal wrangling at this point, but Verizon's threat to straight-up disconnect Amp'd serves as a stark reminder to customers and other MVNOs just how critical the national carriers are to a virtual network's day-to-day operations. Verizon's argument, of course, is simple: Amp'd burns through tens of millions of dollars per month of The Network's airwaves, and nonpayment is grounds for sending out the "can you hear me now?" guy to Amp'd's house to disconnect the service, metaphorically speaking. This'll all play out in the courts over the next few days and months as Amp'd navigates the wide world of bankruptcy, but we've gotta believe Verizon isn't heartless enough to leave its paying customers in the dark.[Via Phone Scoop]
Amp'd files for chapter 11 bankruptcy
We wish we could say we're surprised -- ok fine, we're always a little surprised when a company files for bankruptcy -- but it looks like Amp'd Mobile has filed chapter 11. We know the business has almost 200k subscribers, but apparently the business "couldn't keep up with the growth" -- but since when does growth and consumer interest in an MVNO's service equal business-rattling financial problems? Sounds like something weird is going on, but remember, chapter 11 just means down, not out. (Unlike the entirely out MobileESPN.) In other words, don't be surprised if Amp'd gets its business back in order and makes a triumphant return to the market -- or, you know, goes out of business entirely. [Warning: subscription req'd for link]Update: mocoNews has some more info on the filing, including how much money Amp'd owes who; Amp'd also sent us an official statement on the bankruptcy filing, which is posted after the break.
Gizmondo at CES?
Industry shows are interesting beasts to witness. Frequently, we get clues about the future of gaming simply by looking at who decides to show up. There is one big surprise listing at the 2007 CES. According to the CES website, "It's all fun and games for AMD, Apex Digital, ATI, Dell, Logitech, Nvidia, Alienware, Microsoft, Sony and Gizmondo." This is a fairly odd sentiment given the company is now bankrupt and isn't making games anymore. Maybe the CES doesn't pay much attention to the news (or found it near-impossible to decipher) or Gizmondo pre-paid over a year ago and gets an empty booth. Gizmondo doesn't seem to be dying a graceful death. Stories like the Bo Stefan Eriksson story keep cropping up. Maybe the empty booth at the 2007 CES will be the dénouement of this pathetic riches-to-rags story; or maybe a huge surprise with the return of Gizmondo. [Thanks, Falafelkid]
German prosecutors probing BenQ Mobile's bankruptcy
Another day, another company slamming the doors shut, and another governmental group prying them back open to sniff things out. Shortly after BenQ pulled the plug on its German mobile division (and somehow got its P51 to China), chief senior public prosecutor Christian Schmidt-Sommerfeld has initiated an investigation to find out just what went down behind the scenes of the now-closed company. It's possible that "a number of bankruptcy-related offenses were committed," such as delaying their filing for bankruptcy and overstating how many units were sold in the most recent quarter by a couple million. Rumors had already surfaced regarding management's knowledge of the cashflow quandaries and their adamant indifference towards finding a solution, eliciting statements of "being lied to" to mar the already unfortunate closing. Nevertheless, we're sure someone will get to the bottom of all this, but unfortunately there's nothing they can do to bring all those unreleased (and sexy) mobiles to market.[Via The Register]
BenQ pulls the plug on its German mobile division
Auf wiedersehen, BenQ-Siemens, we hardly knew ye. Yes, the struggling German mobile division of BenQ has just filed for bankruptcy protection as per orders from BenQ headquarters in Taiwan. The International Herald Tribune reports that BenQ estimated the company has lost $762 million on the mobile division (which employs 3,000 workers) since it took over the Siemens business in October 2005. Further, The Associated Press adds that the German division will be completely excised from BenQ "financially and operationally once the bankruptcy protection is approved." It's too bad that we won't have the maker of "feminine luxury" or of the "Treo 600-killing" P50 to kick around anymore, because really, who doesn't love a good underdog? Read - IHTRead - AP[Thanks, Antti]
More Atari trouble: Infogrames shares suspended
Newly appointed Atari CEO, David Pierce, must have been dangerously close to spilling his herbal tea this morning after reading a BBC news report regarding the suspension of Infogrames shares. If you recall, Infogrames is the French company that purchased the seemingly cursed Atari name back in 2001 -- bad news for them means bad news for Atari. Of course, Mr. Pierce's described reaction to the news is entirely fabricated. It seems ludicrous to suggest that he learned of the share woes through a website, much less that he accessed it through the sole computer which hadn't been repossessed yet. Though we jest, Atari's continuing string of financial pitfalls is no laughing matter (especially not for them). The company and its owner are clearly in strong need of some bankable intellectual property that goes beyond Dragon Ball Z and repackaged classics. Will the next generation of consoles give them a big break and the hit they need? In this industry, anything is possible. [Thanks, Jose.]
Atari appoints new CEO, hopes to avoid pitfall
David Pierce is one lucky guy. In addition to being given a fancy "CEO" title and $600,000 annual salary, the man has now been placed at the helm of Atari, currently in the process of sailing through stormy seas and various other clichés that amount to a lot failure and not an awful lot of money in the bank. He has over 20 years of management experience, including stints at Universal Pictures, MGM, Sony Pictures and Sony Music Entertainment -- perfectly valid evidence to back up the claim that he generally knows what's he's doing. Atari stocks went up by a whole penny following the news, indicating that more than one person believes this to be a good move.The company's previous CEO and potential Marvel Comics character, Bruno Bonnell, has been shifted into the position of "Chief Creative Officer." Presumably, that entails coming up with creative ways to get the most out of the stationery and decorating the offices with cost-effective origami and pleasing fingerpaintings. Joking aside, these internal modifications may finally allow this Atari (Infogrames in disguise) to escape its current rut, reap the financial rewards and usher in an all-new video game apocalypse. Will Mr. Pierce be able to plug up that hole in the company's boat? We'll have to wait and see (and play).[Thanks cringer8!]
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.
VK goes belly-up
Officially, it was the discrepancy between the value of the dollar and that of the won, combined with aggressive marketing strategies of companies like Nokia and Motorola that have driven Korean battery-turned-handset maker VK into receivership, a form of bankruptcy. Personally, we believe it had something more to do with the boatload of unimpressive and stylistically unoriginal handsets (Kickflip notwithstanding) they've released since they entered the mobile phone game in 2002. Either way, they'll surely be missed; if not by us, then by SK Telecom and other investors who parted with billions of their won earlier this year in a failed attempt to keep VK afloat. Our only regret is that we won't get to pocket the 4-megapixel VK 2200, but since we don't live in South Korea, there's a good chance we never would anyway. Oh well, at least we'll always have CeBit.
RIP Prismiq: 2001 - 2006
We'll admit, we didn't have a whole lot of coverage of Prismiq -- namely because by the time we hit the scene in 2004, they had more or less already launched the majority of the products they had in the pipeline. Unfortunately, those products would be among their last, as we've just received word they're closing up shop for good. Far be it from us to enjoy a bit of schadenfreude at a dying company's calamity (unless that company were to be Xero Mobile, perhaps, or Gizmondo), but for those interested in a sweet deal on a Prismiq device, seize the moment while they're online for cheap as they liquidate final stock. Just another stark reminder of what a long way it is to the top of the consumer electronics food chain, and what a short trip it is to packing up and going home, even when you won Best of CES 2003 and were one of Time's Gadgets of the Week.
Majesco may not go belly up after all!
There's still a chance Majesco might run out of money in the near future, but the New Jersey-based company's latest financial results are providing investors with some hope that a turnaround might be in the works, according to a research report by Wedbush Morgan Securities analysts Michael Pachter and Edward Woo. The company made more money than anybody expected in the latest quarter. They also managed to keep their costs low and have decided to focus on lower-budget console and handheld titles. How does a game developer on the rocks keep costs low? By firing the QA staff, of course! The company notes in its latest financial statement that lower R&D costs are "principally attributable to lower quality assurance employee costs as a result of the fewer number of premium game projects currently in the development cycle." Pachter and Woo (who maintain a "sell" rating on the company's stock) write, "Although we are still unable to paint a rosy picture about Majesco’s prospects, we think that the shift in strategy is the right decision, and note that the company has begun to show signs of improvement." [Post screenshot comes from recent Majesco title Aeon Flux for the Xbox and PS2]
