Liquidation looms for struggling Virgin

Publisher Virgin Interactive is awaiting the results of a creditors meeting on
March 11th to find out if the company is to be liquidated or if a rescue pack-
age prepared by insolvency consultants will be accepted.

The struggling company, once one of the top British publishers, has debts of
almost £36 million – of which, around £26.9 million, is owed to parent company
Titus – and assets worth as little as £65,000 in any liquidation proceedings.
It’s likely therefore that creditors will accept the deal presented to them, which
sees Titus promising the sale of Interplay and hoping to raise up to £50 million
between that transaction and other future sales. It hopes to pay back preferential
creditors fully and to offer at least 65% of the debts owed to other creditors.

It has been rumoured that the publisher cannot currently afford to release any new
products due to its financial situation, with release dates for several titles including
Run Like Hell,Hunter: The Reckoning Redeemer and,Galleon: Islands of Mystery,
being missed consistently ,Virgin Interactive’s financial problems, could affect
releases from Interplay, Titus interactive, EyeOne and Smart-Dog.