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SouthPeak increases credit to $8 million

Publisher stabilises finances until end of 2010

SouthPeak Interactive has extended its credit line to November 30, 2010, and increased its credit facility to $8 million.

The company had been operating on a credit extended on a month-to-month basis with SunTrust Banks, with a limit of $7.5 million.

"The loan extension improves our flexibility in managing our capital structure and provides added security for executing on our growth strategy," said Melanie Mroz, SouthPeak’s president. "We believe that securing this additional access to capital and improving the maturity terms puts us on track to address our independent auditor’s going concern qualification outlined in our most recent 10-Q filing."

The publisher swung to a loss of $2.6 million for the Christmas quarter, as it released only two titles during the period – a strategy it called part of its "defensive posturing" in a tough market.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.