News has finally come out that OnLive was a company that was in dire straits and it only had days to live in terms of cash flow.
Last week OnLive’s assets were transferred to Insolvency Services Group before being sold onto Lauder Partners. Yesterday, ISG’s CEO Joel Weinberg revealed the extent of OnLive’s arrears to Lauder Partners San Jose Mercury News.
“It was a company that was in dire straits. It only had days to live in terms of cash flow and the like,” Weinberg disclosed, “Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster.”
It was also reveled that OnLives debt was somewhere between $30 million and $40 million and that the Investors HTC and British Telecom (BT) will write off their investments. Weinberg also revealed that he expects investors to only receive 5 to 10 cents per dollar owed.