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New $10m investment for SouthPeak

Publisher pays off the last $8m cheque with help from personal guarantees

Controversial publisher SouthPeak has rounded up another $10 million line of credit.

The new money comes as a result of SouthPeak having arranged to pay off its last investment of $8 million from SunTrust Banks, via a combination of cash and guarantees from SouthPeak bosses and "certain other affiliates."

The publisher's coffers are now to be filled with help from private financial services firm Rosenthal & Rosenthal, Inc. The credit will be provided until 2012.

"Securing this additional credit provides us with greater financial flexibility and presents a clear message to our investors that we are confident of our business prospects and growth opportunities over the near- and long-term," said Terry Phillips, SouthPeak’s chairman.

"We continue to execute on our growth strategy to introduce new games that build our extensive portfolio. Our popular titles provide us with a significant opportunity to enhance our portfolio as well as enter new high-growth categories and expand our digital reach to further increase our brand equity."

In May, SouthPeak reported a small profit of $192,000 for the third quarter ended March 31, compared to a loss of $692,000 for the same period last year.

This followed several spells in court for disputes with cdv and Paradox. While Paradox eventually settled its accusation of withheld payments out of court, cdv blamed its recent filing for insolvency on SouthPeak failing to stump up judge-ordered funds.

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Alec Meer

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A 10-year veteran of scribbling about video games, Alec primarily writes for Rock, Paper, Shotgun, but given any opportunity he will escape his keyboard and mouse ghetto to write about any and all formats.

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