OnLive Owed $30M-$40M To Creditors Before Going Insolvent
Three days ago, we wrote about how HTC will be losing $40 million due to OnLive restructuring. HTC invested $40 million into OnLive in February 2011. Last week OnLive was seeking an alternative to bankruptcy and they estimated $30-$40 million in debt to creditors.
The cloud gaming company was seeking a buyer, but could not find one so they were facing an imminent shutdown of their services said Insolvency Services Group CEO Joel Weinberg in an interview with San Jose Mercury News. Weinberg’s company is involved in OnLive’s alternative to bankruptcy plan.
“It was a company that was in dire straits. It only had days to live in terms of cash flow and the like,” said Weinberg. “Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster.”
OnLive transferred their assets to ISG, who turned them around and sold it to an affiliate of Lauder Partners this past Friday. Proceeds from that sale is being used to pay some of the creditors. Weinberg did not say how much those assets were sold for.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry