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OnLive were in worse shape than previously thought, owed up to $40 million and were on the verge of an imminent shutdown

OnLive owed between $30 million to $40 million, was on the verge of shutdown

Anthony Garreffa | Aug 23, 2012 at 7:27 am CDT (0 mins, 50 secs time to read)

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:

OnLive were in worse shape than previously thought, owed up to $40 million and were on the verge of an imminent shutdown | TweakTown.com

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.

Last updated: Apr 7, 2020 at 11:28 am CDT

NEWS SOURCE:mercurynews.com
Anthony Garreffa

ABOUT THE AUTHOR - Anthony Garreffa

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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