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Sale of SouthPeak assets generates 50,000

Fri 06 Aug 2010 10:38am GMT / 6:38am EDT / 3:38am PDT
Business

Bailiffs poised to take Two Worlds II; decision on frozen 30k to be made next week

The sale of games seized from SouthPeak and auctioned on behalf of CDV Software has generated over 50,000, with a decision on the frozen 30,000 payment next week.

CDV took action against SouthPeak for alleged non-payment of bills, sending bailiffs to take over 40,000 games from SouthPeak, and freezing a payment to the publisher from distributor Centresoft in the hope of redirecting it to CDV.

Despite SouthPeak's efforts to adjourn the decision on the 30,000, lawyer Fladgate LLP is confident payment will be awarded to the now-defunct publisher. Despite the 50,000 made from the sale of games such as 3D Dot Game Heroes and Horrid Henry, CDV is only likely to receive around 12,000 after fees.

It may be a small victory as CDV tries to reclaim the $3.4 million owed by Southpeak, but its lawyers said it will continue to take action against the controversial publisher.

As Southpeak prepares to launch Two Worlds II in September, Fladgate is deciding whether to seize the stock or wait to claim the proceeds of sales of the fantasy game.

"They don't have any new releases until Two Worlds II, but we'll be able to do the same again," warned Lawrence Abramson, partner at Fladgate.

"The question is, do we seize the stock or let it sell and seize the proceeds? And then there's the question of whether Centresoft would want to distribute Two Worlds II for Southpeak.

"It's not their problem of course, but it does unsettle the staff when bailiffs turn up at the door," he added.

German publisher CDV Software Interactive went into liquidation earlier in the year due to non-payment by SouthPeak, with the UK offices of CDV also forced to close for good at the start of June.

Southpeak is also involved in legal action with My Baby developer Nobilis for alleged non-payment of funds.

1 Comment

Aaron Grommesh
Community Manager

8 0 0.0
So, the lawyer can decide to seize the stock of Two Worlds 2 and sell it for wht is basically manufacturing and shipping costs, or they can wait until it sells in stores, take something like 40-50 times the amount of cash, and be better off.

Taking the games at first should be just a warning. Seizing and selling should only be done when stores stop carrying the games or if SouthPeak starts funneling their funds into the Cayman Islands.

Posted:4 years ago

#1

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