Interplay says: debt, what debt? I don't see any debt

Brother None

Brother None

This ghoul has seen it all
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Interplay has managed to produce yet another SEC filing, which seems to be the only thing they're doing, as fears of a Fallout MMORPG to which they would still hold the license are allayed by the following statement:<blockquote>The Company has suspended all product development during 2006 due to the Companies current financial conditions and therefore no expenses were incurred.</blockquote>However, hidden in the 10-Q is this mind-boggling statement:<blockquote>NOTE 4. REVERSAL OF CERTAIN PRIOR YEAR ACCRUALS AND ACCOUNTS PAYABLES

During the quarter, the Company has reversed certain accruals and accounts payables of approximately $1,823,000. It is the company's policy to reverse outstanding accruals and accounts payables that have been outstanding for over 3 years and no effort has been made by the vendor or claimant for that period of time to collect the outstanding balances.</blockquote>This means that according to Herve and co, they've just acquitted themselves of 1.8 million dollars in debts by simply declaring them non-existent by logic that nobody has come looking for them for 3 years. Now I'm no expert, but huh?

Link: Interplay 10-Q filing on sec.gov
 
Most.ass-tarded.policy.ever.
I wonder whether they then consider their debt to Corith and other employees as void.

Also, for an official company document for the SEC they don't know the difference between 'Company's' and 'Companies' (and why the capital letter?)
 
Is it really stupid policy? Or a smart move, which suckers the person or company dumb enough to sign an agreement with that as a clause? In all honesty, I wish I could get away with that. I'd never have to pay a bill again!
 
It is true that Interplay writing off 1.8 million in debt is weird -- but it does happen. It seems like they are really determined to elimate all debt from their company.

They issued new equity to pay off debt (which is generally looked down upon in the world of corporate finance) and they managed to pay off 3 million of their payables.

However, they still have 8 million in debt outstanding, with only 208,000 in assets -- let's just hope they don't declare default again.

All of the money they are making from royalties is going right to their debtholders and they are still losing even more money. And they're only making a couple hundred thousand from their stock -- which is no where near enough to pay off their debt.

Pretty sad state of affairs for Interplay.
 
Traejan said:
It is true that Interplay writing off 1.8 million in debt is weird -- but it does happen.
Click to expand...
it does happen, but not after 3 years, Traejan. there are rules for that kind of thing & i doubt that what they're doing is very legal atm...
 
Basically, it sounds like they did just what most debt management places do: check to see what your oldest non-collected debts are, send them a letter saying that if they do not respond in writing the debt will be removed from the credit record, and if they fail, it is removed.

It's perfectly legal, and in fact can be done by individuals too. You just need to know what the state's laws are for your area so you know how long you must give them to respond and/or how old the debt must be.

- Drake Steele.
 
To think in what state interplay is, it would have been really stupid not to use that technique (as it's legal).

It's another matter how you can become more stupid...maybe the eightball came to the rescue! It's so hard to think on your own sometimes. That's why we also have a eightball in the office. Just for those hard decisions. :twisted:
________
MARIJUANA VAPORIZERS
 
So after another 3 years or so everyone would have given up and then Herve can cancel the rest of the depts, making Interplayer completely dept free and ready to start production of FOMMORPG :) (<- This is actaully a sarcastic smilie)

Though Interplay has now posted a new game on their site - it's a link to be able to play online chess at some other site (at least we know what Herve does all day now)

But I suspose interplay does have their new office space....
 
Though Interplay has now posted a new game on their site - it's a link to be able to play online chess at some other site (at least we know what Herve does all day now)
Click to expand...
It's Zax the Chess Master.
 
SuAside said:
Traejan said:
It is true that Interplay writing off 1.8 million in debt is weird -- but it does happen.
Click to expand...
it does happen, but not after 3 years, Traejan. there are rules for that kind of thing & i doubt that what they're doing is very legal atm...
Click to expand...

You kidding me? It can happen all the time -- it happened with Worldcom, it happened with Enron. Some debt-holders realize they may never get paid a receivable (even after a short period of time) -- so they forgive it, delve into their allowance for bad debt account and move on. They realize Interplay has very few assets and they are making no money.

It's not breaking any rules if what's in the 10-K is actually the case. However, if it isn't the case and debtholder aren't forgiving those debts, then the debtholders will file a legal complaint and/or the SEC will audit Interplay.
 
Hell, I am gonna do the same with my company. Borrow like 5 million bucks, spend it and then just write the debt off. Herve is a freaking business genius! :roll:
 
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