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Publisher Playlogic Files For Bankruptcy In Netherlands
by Chris Remo [PC, Console/PC]
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July 27, 2010
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The financial troubles of New York- and Amsterdam-based publisher Playlogic, developer of last year's Fairytale Fights, escalate this week as the company has filed for surseance van betaling bankruptcy in the Netherlands.
In a brief SEC filing posted today, Playlogic said it "has voluntary [sic] requested a delay of payments, 'surseance van betaling,' the Dutch equivalent of Chapter 11."
The request applies to the company's publishing unit as well as its internal development studio, Playlogic Game Factory.
The move comes after lengthier recent SEC filings, in which the publisher outlined a litany of factors contributing to its current situation, including overdue payments, loan defaults, and poor cash flow.
Playlogic claims it is owed money by Koch Media, its major European distribution partner. According to the filing, Koch owes Playlogic some 1.7 million euros ($2.4 million) as of December 2009, and Playlogic has begun legal proceedings in Austria to claim that sum.
And in a similar -- but reversed -- situation, Playlogic notes that it too has failed to make necessary payments to other partners, putting it further at risk of legal action. "Due to the Company’s cash flow situation, we are behind on payments to some of our vendors," the filing reads. "Some of these vendors have gone legal to collect their outstanding receivables."
The filing outlines a series of eight loan agreements made with two Netherlands-based shareholders from January to October of last year. In November, Playlogic came to an agreement with those investors to extend its loan repayment dates to April of this year, but the company has been defaulting on those payments.
"If the Company does not obtain any necessary financing, we may need to cease operations," one filing claimed. "There is substantial doubt about our ability to continue as a going concern."
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