Nacon’s current liquid assets are no longer sufficient to meet its immediate financial liabilities.
Nacon has announced its intention to file for insolvency and seek a court-ordered reorganization (“redressement judiciaire”). This decision follows a sharp decline in its financial stability, largely triggered by the deepening troubles of its majority shareholder, Bigben Interactive.
Back on February 20, Nacon warned that Bigben Interactive’s precarious position was beginning to severely impact its own operations. The parent company had recently faced an unexpected and eleventh-hour withdrawal of support from its banking pool, which prevented it from fulfilling a partial bond repayment to its investors.
The company emphasized that its current liquidity crunch demands an urgent financial overhaul involving its creditors to ensure business continuity. Consequently, Nacon is pursuing legal mechanisms to facilitate a court-supervised debt restructuring.
As it stands, the firm’s available capital is inadequate to cover its maturing debts. Under these circumstances, Nacon plans to formally submit a “déclaration de cessation des paiements” (notice of cessation of payments) and petition for the opening of a judicial reorganization process.
Management hopes this procedure will allow the company to maintain day-to-day operations while negotiating with creditors in a structured environment. The primary objectives are to establish a realistic recovery plan, ensure long-term business viability, and protect its current workforce.
Nacon’s recent catalog features titles such as RoboCop: Rogue City, Test Drive Unlimited Solar Crown, Styx: Blades of Greed, and Gear Club Unlimited 3.
Despite the financial turmoil, Nacon announced earlier this week that it will host its next Nacon Connect event on March 4. The presentation is expected to feature new game reveals and progress reports on previously announced titles, including Cthulhu: The Cosmic Abyss, The Mound, Edge of Memories, and Endurance Motorsport Series.
Source: iXBT.games