Thu, Apr 21, 2011 | 21:36 BST
Rumor – Restructuring plans at JoWood have failed
Various sources are claiming that JoWooD’s insolvency process is not going well, and that negotiations with possible investors have failed.
Per the various sources reported over on RPGwatch, the firm’s plans to restructure have not worked out and liquidation proceedings could start shortly. It’s sister firm, JoWooD Distribution Services GmbH, filed for insolvency today, and trading of JoWooD shares was suspended by the Vienna Stock Exchange as well.
Troubles for JoWood started back in January after it failed to acquire more capital and equity and had to file for capital reorganization with Vienna’s commercial court. JoWood believed it could sort out its credit issues within 90-days, however, it looks as though, if these reports are true – it was unable to do so.
Also in January, JoWood filed a lawsuit against Koch Media claiming the firm underpaid for 6.4 million JoWood shares back in 2006. JoWood claimed Koch owed it €2.36 million ($3.04 million), plus interest as the underpayment of the shortfall was “perhaps not committed knowingly,” as JoWooD recalculated the worth of its account receivables – which Koch offered as in exchange for the 6.4 million shares.
“With a view to JoWooD’s strained financial situation and based on corporate law considerations, the company’s management board today decided to file the law suit in the company’s and its shareholders’ interest,” read a statement from the publisher. According to Austrian corporate law, Koch could be liable for the shortfall “irrespective of fault.
JoWooD and Koch were involved in legal proceedings together once before, back in 2008, but ended up settling the matter. A final court decision regarding the latest Koch suit could result in “tedious proceedings that could last for several years.”
Then, back in March, JoWooD announced an “indefinite” delay for the release of Arcania: Gothic 4′s expansion Fall of Setarrif due to legal issues. The expansion was originally slated for a March 25 release, but was delayed until further notice with the possibility of it never being released at all.
A statement from the firm on the matter claimed that “diverse legal positions” with German investor BVT were the reason for the delay and that the legal situation regarding Gothic 4 and BVT’s funding was “unclear.”
We’ll send a mail.