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Trip Hawkins isn't the only publishing executive opening his wallet for his company. Last night Acclaim announced that CEO Greg Fischbach and Senior Executive VP James Scoroposki each fronted $1 million to increase the company's credit ceiling with GMAC

Game Developer, Staff

April 11, 2003

1 Min Read

In exchange, the two executives (who are the co-chairmen of the company's board of directors) were each issued 2 million company shares, plus other warrants. The deposits are to be returned within five days of Acclaim repaying its the excess amount over the ceiling, but in the event that GMAC does not return the deposit to the two executives, Acclaim will repay them directly, and if for some reason that is not possible (presumably because of company liquidity problems), then the two executives can apply the debt to any loans they previous took out with the company for personal reasons. The company had previously disclosed a series of loans to executive officers for the purchase of homes, stock and other purposes -- although it's not known whether Fischbach and Scoroposki were among those executives who borrowed from the company. Acclaim share prices are hovering around 50 cents right now, and the company faces possible delisting from Nasdaq due to its low share price.

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