We can reveal that the entire Titus/Interplay empire could possibly balance on Virgin being declared solvent and able to trade, in incredible news that could spell the end of a development and publishing giant.
Over the years, Virgin took massive amounts of cash from Titus/Interplay, believed to total around £25 million. If Virgin is declared insolvent, this figure is likely to come off Interplay?s bottom line, leaving a massive hole in the firm?s accounts. At this point, it?s likely that Interplay, with a current market capital of around $3 million, may collapse, perhaps taking Titus, a 74% shareholder in Interplay, with it.
It is known that a creditors? meeting is scheduled for March 11, in which Virgin hopes to gain support for a Company Voluntary Arrangement, which would see the firm safe from a winding up order. Half of the firm?s creditors must agree a repayment figure, to avoid Virgin having its assets, totalling a mere £69,000, from being liquidated.
The offer to creditors is based on the premise that Titus will raise £50 million when it sells off Interplay, a figure thought unlikely at best, given that the firm is currently quoted as being worth around $3,000,000.
We?ll bring you more on all this, as we get it.