UK Mobile Games Outfit Telcogames In Administration; Management Buy-Out?
Thursday, April 24, 2008; 5:59 AM
London-based mobile games developer, publisher and distributor Telcogames has gone in to administration, we can reveal after confirming with CEO Jamie Conyngham. The company was placed in to the administration of Menzies last Thursday but is continuing to trade. Last available accounts obtained from Companies House show the company lost £872,845 in 2006. It closed its Fathammer and Magic Productions games studios in Finland and France in November, moving production to Korea. Telcogames developed its own games, including SIL via its Fathammer unit, for Symbian, UIQ, WIPI, Windows Mobile, Brew and PC, and distributed other developers' games to third-party portals. It appointed former SCEE and Motorola (NYSE: MOT) VP Juan Montes as chairman as recently as February, when Montes said 2007 had been a "challenging" year but 2008 would be "exciting".
Update: The administrator's letter to stakeholders ( via MGB): "We are presently examining the financial position and prospects of the company. It is the (our) current intention to sell the business and assets as a going concern. I have received an offer from the company's existing management. In the absence of any other offers I intend to progress with management's offer." NB. A company goes in to administration when it hits financial trouble, affording it certain protections against creditors and legal action. With an administrators' help, Telcogames will essentially get another life.