Following the
recent news that Tiger Telematics subsidiary and handheld game hardware company Gizmondo Europe has filed for bankruptcy in the United Kingdom, an updated SEC filing from the company has revealed more information on a bridging loan and the fate of other subsidiaries.
The reason for the filing is to reveal that, on January 31, Tiger Telematics managed to complete a $5 million lending agreement with Laffitte Partners, LLC, which will apparently help continue the company's worldwide operation, currently largely consisting of U.S. and European Gizmondo divisions.
According to its statement, Tiger Telematics still intends to use a portion of the funds from lending agreement to reinvest in the business in UK, but "no assurances can be given that this will be achieved", and currently, the company is subject to protection of the Court, thus "all enforcement actions of creditors are automatically stayed."
Updates were also given on other Gizmondo divisions, with the confirmation that the "anticipated similar action in Sweden for the game subsidiary of Gizmondo Europe and for the Company's Gizmondo Studios, Sweden AB subsidiary was concluded, and each unit has been placed into bankruptcy liquidation."
In addition, Gizmondo "anticipates that the Gizmondo Studios, Manchester subsidiary will make a similar filing within the next few days", leaving only the U.S. division of the firm, which is as yet unaffected by the bankruptcies.
Tiger Telematics is still pursuing a $50 million refinancing deal which it hopes will revitalize its handheld game hardware and software business, but with extremely limited U.S. hardware sales through mall kiosks and
significant questions remaining regarding an investigation into departed executives' financial perks, the company's issues do not yet appear to be over.
