Close
Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

Playlogic files for bankruptcy

Wed 28 Jul 2010 7:45am GMT / 3:45am EDT / 12:45am PDT
Business

Publisher blames late payments and tough conditions after continued losses

Dutch publisher Playlogic has filed for bankruptcy, a filing at the US Securities and Exchange Commission has revealed.

Yesterday the publisher denied it was bankrupt, but later the board of directors confirmed it had voluntarily entered into 'surseance van betaling', the Dutch equivalent of Chapter 11, for both Playlogic International and its development studio Playlogic Game Factory.

"Tough market conditions, late payments by large customers and the delays in projects have forced the company to seek protection under the Dutch bankruptcy laws," confirmed the company.

One of those late payments is from distribution partner Koch Media, which Playlogic is taking to court for unpaid bills totalling 1.7 million.

In the first quarter of the year the firm made a loss of $2.2 million, after losing over $20 million for the full 2009 financial year.

4 Comments

Matthijs Dierckx
Founding Publisher

2 0 0.0
It's no bankruptcy yet. It's a few steps before actually going bust.

Posted:4 years ago

#1
From the SEC
ITEM INFORMATION: Bankruptcy or Receivership

Posted:4 years ago

#2

Alessandra van Otterlo
Event Manager

1 0 0.0
American law has no real equivalent for the Dutch 'surseance van betaling'. Surseance van betaling means that a judge orders all the creditors to 'back of' and give the company some space to sort out their financial business under the supervision of the court. After some time the company will propose to all creditors an agreement in which they can, for instance, propose to pay off debts in installments or to pay just a certain percentage of the debts. When the creditors agree to this proposition it is business as usual and the company will not go bankrupt. Only when the proposition is turned down by the creditors the company will be declared bankrupt. So in the case of Playlogic it is not sure yet. This may sound silly, because why would any creditor agree to receive just a percentage of their outstanding invoices. The answer is simple: if they don't accept the proposal and the company will be declared bankrupt they will most probably get absolutely nothing.



So even though I have to admit that it doesn't look good, Matthijs is right. Playlogic is not declared bankrupt yet under Dutch law. And Dutch law is applicable in this case since both the Playlogic International NV and Playlogic Game Factory BV are Dutch entities.

Posted:4 years ago

#3

Sean Storey
Game Designer

1 0 0.0
Playlogic has now officially filed for bankruptcy:

http://www.sec.gov/Archives/edgar/data/1...

Posted:4 years ago

#4

Login or register to post

Take part in the GamesIndustry community

Register now