Posted By James C. about 8 months, 4 weeks ago
While it was reported that OnLive shut its doors without reason last week, it had not been reported specifically on why the owners decided to dissolve the game streaming company. However, Onlive had dodged the bankruptcy bullet in a sense and is still on severe life support as it goes through a trading of hands and a restructuring process to prevent these events from happening again. While there have been rumors as to why Onlive suddenly laid off all its workers a few days ago, it is now known that OnLive owed somewhere to the tune of 30 to 40 Million USD and had very little to pay the sum due to the fact that they had a infintesimally small playerbase. If the actions of last week did not happen, then OnLive would have faced a hard shutdown sometime in this week and no one associated would have gotten any kind of compensation.
“Assignment for the Benefit for Creditors”, an alternative to Bankruptcy, was used by the Insovency Services Group to take control of assets and sell them to interseted companies to pay off any outstanding debts. Fortunately enough, OnLive’s Assets were purchased on Saturday, only a day after the company’s dissolution, by another company which also calls itself OnLive and will continue the game streaming service in its stead.
Does this sound a little odd, or do companies today have little imagination when it comes to naming themselves?
Regardless, ISG is still in the process of determining total value of OnLive’s assets, but early indications say that they can only pay the creditors up to 10% per dollar owed.
Source: Mercury News