wraggster
October 10th, 2012, 22:32
Creditors lose out, getting only a fraction of their investment in return
The remnants of OnLive, the games streaming service that recently dodged bankruptcy by a whisker, were sold to a venture capitalist for just $4.8 million, according to a letter obtained by theMercury News (http://www.mercurynews.com/business/ci_21735364/onlive-assets-palo-alto-gaming-company-were-sold-4-million).
OnLive was sold to Grey Lauder of venture capitalist firm Lauder Partners (http://www.develop-online.net/news/41752/OnLive-sold-to-new-company) after laying off all of its employees in August 2012.
OnLive’s holding company, the Palo Alto gaming company had outstanding debts of at least $18.7 million, excluding money it owed in the future for leases and other contractual obligations, according to the letter, which was sent to OnLive creditors last month.
Full details of the deal were not disclosed, but figures in the letter indicate that the company’s creditors will end up getting no more than about 26 cents on each dollar they were owed.
The letter details that OnLive, which had previously raised more than $40 million from AT&T, HTC and other major investors, had been exploring a sale or another investment for a “substantial period of time”, as noted by Joel Weinberg, the CEO of Insolvency Services Group, which is handing the company’s bankruptcy-like process.
http://www.develop-online.net/news/42215/OnLive-sold-for-just-48m
The remnants of OnLive, the games streaming service that recently dodged bankruptcy by a whisker, were sold to a venture capitalist for just $4.8 million, according to a letter obtained by theMercury News (http://www.mercurynews.com/business/ci_21735364/onlive-assets-palo-alto-gaming-company-were-sold-4-million).
OnLive was sold to Grey Lauder of venture capitalist firm Lauder Partners (http://www.develop-online.net/news/41752/OnLive-sold-to-new-company) after laying off all of its employees in August 2012.
OnLive’s holding company, the Palo Alto gaming company had outstanding debts of at least $18.7 million, excluding money it owed in the future for leases and other contractual obligations, according to the letter, which was sent to OnLive creditors last month.
Full details of the deal were not disclosed, but figures in the letter indicate that the company’s creditors will end up getting no more than about 26 cents on each dollar they were owed.
The letter details that OnLive, which had previously raised more than $40 million from AT&T, HTC and other major investors, had been exploring a sale or another investment for a “substantial period of time”, as noted by Joel Weinberg, the CEO of Insolvency Services Group, which is handing the company’s bankruptcy-like process.
http://www.develop-online.net/news/42215/OnLive-sold-for-just-48m