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GAME confirms renegotiations underway with lenders

Ongoing process involves strategic review and possible sale of overseas operations

The GAME Group has issued a statement which confirms that it is in negotiations with its lending syndicate to establish a new strategy for future credit.

In a short press release today, the group indicated that it was committed to an ongoing dialogue and the eventual resolution of the issues of credit insurance which have been speculated on so heavily by press in recent days.

Its overseas operations, which amount to more than 600 stores in France, Iberia, Scandanavia, Australia and the Czech Republic are under review.

"In response to press speculation the GAME Group plc confirms that it is in ongoing dialogue with its lending syndicate to reach agreement on revised terms for its facilities," the statement reads.

"As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations.

"A further announcement will be provided once discussions with its lending syndicate have concluded."

During the conference call which followed last night's financial report from EA, CEO John Riccitiello mentioned concerns about the fate of an unnamed European retail chain which he felt could lead to "bad debt and loss of sales".

Whilst Riccitiello remained discreet on the identity of the chain, most have taken him to be tacitly referring to GAME and its current financial turmoil.

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