April 23rd, 2008 by Arjan Olsder Posted in Companies & M&A | 4 Comments »
We just received the official emails from Menzies ‘corporate restructuring’ which are sent out to several developers and publishers, confirming the problems that TelcoGames is in.
This is the content of the official letter;
Dear Sirs,
Telcogames Limited (In Administration) (“The Company”)
I write to advise that I was appointed Joint Administrator of the Company, together with my partner Paul Clark, on 17 April 2008. The appointment was made by RBS Invoice Finance Limited, the holder of a Qualifying Floating Charge. A formal notice of our appointment is attached.
The primary function of an administrator is to achieve one of the objectives set out in the Insolvency Act. We are presently examining the financial position and prospects of the Company. Please can you provide details of your claim on the attached form.
It is the Joint Administrators’ current intention to sell the business and assets as a going concern. Should you be interested in acquiring the business and assets of the Company or be aware of any party who may have interest, please contact my colleague Simon Shipperlee on telephone number 020 7487 1252 or at sshipperlee@menzies.co.uk in writing no later than 25 April 2008. Please note that I have received an offer from the Company’s existing Management. In the absence of any other offers I intent to progress with Management’s offer.
The officers of the Company are required to submit a statement of affairs, but as yet I am not able to give any information regarding the financial position. I will send you a report as soon as it is reasonably practicable which will explain the objectives of the Administration and give details of the steps taken since my appointment. The report will also give details of the financial position of the Company and the prospects of divident. As that time I may also convene a meeting of creditors.
If you have commenced recovery proceedings against the Company I suggest you contact Camilla Kastrup before continuing as a matter of priority, as no legal process may continue against the Company without my consent or permission of the court.
Finally, If you contend that you have any form of security or reservation of title in respect of goods that you previously supplied, please telephone Camilla Kastrup on the above number and provide full written details and copies of documentation relating to your claim.
Should you have any queries regarding the above, please contact Camilla Kastrup in the first instance.
Yours faithfully
For and on behalf of
Telcogames Limited
So as you can read, the company might get into a management buyout. That’s all for now, but as you know, The Blog will keep tracking the news.
where does the management has the money from? Let me guess from the developers? Think what you want – I do the same!
Sounds like another phoenix from the flames en route to me. Let me guess… the management who has decided not to pay providers, some for nearly 2 years, takes a company to the ground and then buys back the company with a name change and less debt?? Wonder where they got the money from. Lets hope this is doors closed for good or at least their contracts are terminated.
Anyone dealing with Telcogames know how eager they are to have money paid to them, and that they are not so eager to pay others. That’s partly why we decided to license games from them, so that we would have some leverage in claiming sales revenue for our games. It’s been a long time since they have invoiced us, so I guess this has been brewing for a while.
the number they posted leads to a by now very irritated guy “I have nothing to do with this, wrong number” 🙂
Don’t think they want any offers, mgmt will probably get what’s worth and leave the debts behind.