OnLive Was $30-40 Million in Debt Before Closure
Ahead of OnLive’s crash last week that resulted in the company filing for bankruptcy, it has been revealed that the service faced debts of between $30 and $40 million.
Joel Weinberg, CEO of Insolvency Services Group, who are involved in OnLive’s insolvency process, told MercuryNews:
It was a company that was in dire straits. It only had days to live in terms of cash flow and the like. Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster.
The company’s creditors are expected to receive 5 to 10 cents on each dollar OnLive owed, causing HTC to take a $40 million loss on their investment.
Despite the company crash, the service is set to continue as OnLive was acquired by Lauder Partners, who sadly only rehired less than half of the employees.