Just a quick one: Oxygen Games, a UK publisher of predominantly sports titles, last week controversially entered administration – specifically, a pre-pack administration. The full story is at Gamesindustry.biz (articles here). Now creditors are beginning to ask questions about exactly what is going on. The latter article carries a quote from our own Jas Purewal (reproduced below):
” ‘Pre-packs can be very [divise]. The commercial logic is sound. But there’s this idea that pre-packs are seen as a done deal that leave creditors out in the cold,” Jas Purewal, an associate of legal firm Olswang told GamesIndustry.biz.”In circumstances where it wasn’t for the pre-pack [the company] would be broken up then pre-packs are becoming more and more common.’
‘It’s worth noting that pre-packs are also under increasing amounts of scrutiny as well because there can be situations where a pre-pack is done in controversial circumstances and creditors may be willing to fund legal challenges against it.’ “