Post by Segaman on Jul 2, 2004 14:50:21 GMT -5
Acclaim Entertainment might be forced to seek bankruptcy protection or shut down if it can't obtain new bank financing. The video game publisher on Friday reported a net loss of 25.4 million dollars for the fiscal fourth quarter ended March 31. Acclaim said it needs new cash to replace a financing agreement with GMAC Commercial Finance that expires Aug. 4. The company has signed a letter of intent with a different lender to borrow up to 30 million dollars but the deal hasn't been completed. Acclaim said it's already in default on the 16 percent convertible notes it sold last year. The company believes it can get a waiver from note holders and is currently in discussions. Reuters says the company has struggled in the competitive video game market due to a lack of hit titles. Acclaim is also facing lawsuits from licensees such as teen actresses Mary-Kate and Ashley Olsen.
