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Acclaim Faces Bankruptcy And NASDAQ Delisting

GMAC Commercial Finance, the primary lender to game publisher Acclaim Entertainment, has agreed not to act against the company, despite the end of an extension to Acclaim...

David Jenkins, Blogger

August 25, 2004

1 Min Read
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GMAC Commercial Finance, the primary lender to game publisher Acclaim Entertainment, has agreed not to act against the company, despite the end of an extension to Acclaim's credit facility. The company’s credit line with GMAC ended in June, but an extension was granted as the company attempted to sign a new $30 million credit line with a new lender. A new credit facility has still yet to be signed with GMAC, although final negotiations are apparently almost complete with an unnamed third company. However, as an Acclaim spokesperson has admitted, "If these negotiations are unsuccessful and GMAC CF exercises its remedies, then the company would be forced to seek the protection of the bankruptcy laws." The beleaguered publisher has also been served a delisting notice by NASDAQ authorities, following warnings last month. The company is in breach of the requirements for the NASDAQ Small Cap Market, with a market capitalization lower than is needed for a listing, and has also so far failed to file its quarterly results form 10-Q with the Securities and Exchange Commission. Acclaim said in a statement last night that it will be filing its results with the SEC shortly, and will then begin appeal proceedings against the NASDAQ delisting. Source: Newsday

About the Author

David Jenkins

Blogger

David Jenkins ([email protected]) is a freelance writer and journalist working in the UK. As well as being a regular news contributor to Gamasutra.com, he also writes for newsstand magazines Cube, Games TM and Edge, in addition to working for companies including BBC Worldwide, Disney, Amazon and Telewest.

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