It has been revealed today OnLive owed creditors $30-40 million, before its insolvency late last week.
OnLive managed to survive by entering an “assignment for the benefit of creditors”, transferring its assets to the Insolvency Services Group.
Joel Weinberg, CEO of Insolvency Services Group.
It was a company that was in dire straits. It only had days to live in terms of cash flow and the like. Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster.
On Friday 17th a venture capital firm owned by Gary Luader formed a new company by the same name, OnLive, and purchased the operating assets from ISG. This means the end user, in this case the gamers, can continue to use the service without any noticeable changes.
The news however is less positive for the creditors, with Weinberg estimating they’ll receive no more than 10 cents on each dollar owed.
Source: Silicon Valley Mercury News