OnLive's debt was $30-40 million, insolvency group reveals
It's now been revealed that OnLive's debt was somewhere between $30 million and $40 million before last week's collapse and subsequent reincarnation.
Last week, the California-based company's assets were transferred to Insolvency Services Group. Those assets were then sold on to Lauder Partners, LLC on the day OnLive ceased operations. Yesterday, ISG's CEO Joel Weinberg revealed the extent of OnLive's arrears to San Jose Mercury News.
"It was a company that was in dire straits. It only had days to live in terms of cash flow and the like," Weinberg disclosed, "Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster."
The newly acquired company will continue to run under the OnLive name, but it had to lay off at least half of its 200 employees as part of the process. It now also appears likely that investors HTC and British Telecom will write off their investments. Weinberg also revealed that he expects investors to only receive 5 to 10 cents per dollar owed.
