Acclaim announces full-year loss, bankruptcy a possibility

Dom · Jul 5, 2004, 11:36 AM

Publisher Acclaim has announced its full-year results for the twelve months ended March 31st, revealing a net loss of $56.4 million and a major decline in revenues - along with a warning that the firm may face bankruptcy in the near future.

As we reported last month, Acclaim is currently seeking a new credit facility to replace its existing arrangement with GMAC Commercial Finance, but despite signing a letter of intent for a $30 million facility, has not managed to finalise a deal as yet.

It's this situation which has led to the bankruptcy warning; "failure to obtain a new banking facility would materially affect the company's operations and liquidity," the report cautions, "and the company could be forced to cease operations or seek bankruptcy protection."

Even outside of that eventuality, the situation for Acclaim is hardly rosy. While the net loss of $56.4 million is actually an improvement on last year's $84.8 million loss, revenues were down substantially - falling $67.4 million to $142.7 million in total.

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Source: GameIndustry

Jul 5, 2004, 11:36 AM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Acclaim announces full-year loss, bankruptcy a possibility Publisher Acclaim has announced its full-year results for the twelve months ended March 31st, revealing a net loss of $56.4 million and a major decline in revenues - along with a warning that the firm may face bankruptcy in the near future. As we reported last month, Acclaim is currently seeking a new credit facility to replace its existing arrangement with GMAC Commercial Finance, but despite signing a letter of intent for a $30 million facility, has not managed to finalise a deal as yet. It's this situation which has led to the bankruptcy warning; "failure to obtain a new banking facility would materially affect the company's operations and liquidity," the report cautions, "and the company could be forced to cease operations or seek bankruptcy protection." Even outside of that eventuality, the situation for Acclaim is hardly rosy. While the net loss of $56.4 million is actually an improvement on last year's $84.8 million loss, revenues were down substantially - falling $67.4 million to $142.7 million in total. Read More... _________________________ Source: GameIndustry