World Exclusive: Virgin collapse to start house of cards disaster
Inter-company loans could mean the end for Interplay and Titus.
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.
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.
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