Red Mile must secure loan or close doors in 30 days

Red Mile Entertainment has announced that it sustained substantial operating losses of USD 35.1 million to December 31, 2008, and the company faces closure within 30 days if it cannot secure an increased line of credit.

The Sin City developer had secured USD 1 million in February 2008 from Tiger Paw Capital Corporation and, as of December 31, has withdrawn USD 500,000. However, the company is attempting to increase its line of credit or "likely cease operations".

Both of its core titles faced significant set backs during the period, with Heroes Over Europe seeing Atari back out as co-publisher and the developer terminating work on the project over a failure to meet payments. Meanwhile, Sin City now also faces delays unless the developer can secure USD 10 million.

"We are also developing Sin City: The Game and currently in the process of negotiating revisions to the license agreement," the company explained in a statement. "If we can raise sufficient funds to continue operations, we expect to ship this game in fiscal 2012."

Red Mile said it needs an additional USD 10 million in funding to finance operations over the next 24 to 36 months.

"We will be unable to complete development of Heroes Over Europe and Sin City: The Game, or publish any other additional games if we are unable to receive co-publishing advances on both the foregoing titles or raise additional capital through either sale of securities or issuance of debt," the company said.