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.