We reported about the going-ons of streaming game service OnLive over the weekend, but it looks as though the situation was much worse with the company, reports the Mercury News. According to Joel Weinberg, CEO of Insolvency Services Group, OnLive owed between $30 and $40 million to various creditors, and didn't have much cash on-hand to pay them. The company had failed to find a buyer, and was facing the stark reality of a complete shutdown of their services. Weinberg adds:
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.
Insolvency Services Group are the assignee in OnLive's "assignment for the benefit of creditors", which is an alternative to bankruptcy that operates under state law. OnLive's assets were transferred to the insolvency group, who who use them to partially pay OnLive's outstanding debts.