fitbabits
01-23-2006, 07:31 AM
Aside from sounding like the title to a terrible cartoon, the following news (http://www.gamasutra.com/php-bin/news_index.php?story=7878) should be filed in the 'nuh-uh!' category. Thanks to Gamasutra (http://www.gamasutra.com) for the info.
Following its continued and highly publicized issues, at the close of business on Friday January 20, 2006, Tiger Telematics subsidiary and handheld game hardware company Gizmondo Europe filed a High Court application for administration in the United Kingdom.
According to an SEC filing in the U.S., the application "provides Gizmondo Europe with a moratorium in order to affect a financial restructuring of the business." Gizmondo Europe will have a court hearing on 31 January 2006 to grant the administration order. During the interim period, Gizmondo Europe is immediately subject to protection of the Court and all enforcement actions of creditors are automatically stayed.
The statement also reveals significant layoffs at the company and the apparent funding of a bridge loan, commenting: "The Company intends to use funds from its recently announced $5 million bridge loan to reinvest in the business in the in UK and to restructure the overall debt of the European business. Gizmondo Europe Limited made a reduction in payroll of approximately 50% of monthly staff costs during the week prior to the court application to reduce overall operating expenses of the business and significantly improve its prospects for a successful turnaround."
Wow! Didn't see that one coming...
Following its continued and highly publicized issues, at the close of business on Friday January 20, 2006, Tiger Telematics subsidiary and handheld game hardware company Gizmondo Europe filed a High Court application for administration in the United Kingdom.
According to an SEC filing in the U.S., the application "provides Gizmondo Europe with a moratorium in order to affect a financial restructuring of the business." Gizmondo Europe will have a court hearing on 31 January 2006 to grant the administration order. During the interim period, Gizmondo Europe is immediately subject to protection of the Court and all enforcement actions of creditors are automatically stayed.
The statement also reveals significant layoffs at the company and the apparent funding of a bridge loan, commenting: "The Company intends to use funds from its recently announced $5 million bridge loan to reinvest in the business in the in UK and to restructure the overall debt of the European business. Gizmondo Europe Limited made a reduction in payroll of approximately 50% of monthly staff costs during the week prior to the court application to reduce overall operating expenses of the business and significantly improve its prospects for a successful turnaround."
Wow! Didn't see that one coming...