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RubberJohnny
Member
(06-25-2017, 10:19 AM)
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The last thread got closed because it linked to a banned source, so I'm linking to the original source here:

https://beta.companieshouse.gov.uk/c...GM-FC6tbyhYlss
https://beta.companieshouse.gov.uk/c...filing-history

CIG, the creators of Star Citizen, a game that has pulled in $150 million in crowdfunding, many times the original goal of $6 million, has applied for additional loan funding from a bank, in return offering up literally everything they own as collateral - the Star Citizen IP, all assets, all code, distribution rights and so on. From the attached PDF:



24. LICENCE

24.1 The Chargee, ( bank ), hereby grants to the Chargor , ( CIG ), an exclusive license, revocable only in accordnance with Clause 24.2, to develop, produce, exploit and otherwise deal with the Game.

24.2 The Chargee, ( bank ), may terminate the license granted pursuant to Clause 24.1 above upon the happening of an Event of Default which remains unremedied on the date failing 60 days after the the Chargee has given written notice to the Chargor of such Event of Default.

TL;DR The bank now own the game and provide a license to CIG to continue developing, if they miss a payment, all the backers get screwed. They can't apply for any additional loans or funding because they have nothing to offer - all their assets have a negative pledge clause.

Putting everything you own up as collateral is pretty rare - Ford did it just before the 2008 recession and it was a heavily remarked upon piece of news because mortgaging the company was, and is, a gutsy move that requires either a strong long-term plan requiring lots of capital investment, or is an act of desperation in trying to feed a furnace and the only thing left are the floorboards and planking upon which it sits. Either way it's a huge risk.

Obviously the terms of the loan aren't public, but this looks like it's more of the latter than the former - banks will look at the company's assets, net income, company structure, accountant reports, etc. and then usually offer (or refuse) a loan with strings attached, the number of strings depending on the financial shape of the business. CIG went to Coutts with their finances and came back with a floating charge, a fixed charge (on all assets), and a negative pledge. Evidently, their finances did not impress.
Last edited by RubberJohnny; 06-25-2017 at 11:11 AM.
Poster#1
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(06-25-2017, 10:20 AM)
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150 million dollars down the drain.
Bold One
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(06-25-2017, 10:21 AM)
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Say what you will about No Man's Sky, at least it came out.
Seventy70
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(06-25-2017, 10:22 AM)
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Who could've possibly known this thing would be a trainwreck!
Toni Codrea
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(06-25-2017, 10:22 AM)
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Didn't this start funding like 4 years ago? Didn't they also make some FPS spin off in the meanwhile? Jesus, this project was managed so poorly.
Cracklox
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(06-25-2017, 10:23 AM)
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So.... Where'd all that crowdfunding money go then?
clarknova156
Member
(06-25-2017, 10:23 AM)
Wow , that is a serious blow. Could be the biggest crowd funding disaster of all time if this fucking forever in development game never releases.

I popped $30 bucks in ages ago but I also have a few dumb ass friends who dropped a few hundo on ships and I would love to laugh in their faces (of course I want the game to release just saying I would be a dick and lord it over them for awhile).

This news will not go over well at the Star Citizen forums... they have to be going south with complaints and stressed out investors.
HazySaiyan
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(06-25-2017, 10:23 AM)
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LOL what a fucking disaster
Kenzodielocke
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(06-25-2017, 10:23 AM)
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Please buy more ships, dear whales.
Whales
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(06-25-2017, 10:23 AM)
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Is this a joke..?
thomasmahler
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(06-25-2017, 10:24 AM)
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Man, some people spent thousands of dollars on starships that only work in a system that'll most likely never exist...
Machina
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(06-25-2017, 10:24 AM)
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In b4 the lock
TissueBox
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(06-25-2017, 10:24 AM)
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*sighs at cloud*

Rough waters ain't new with SC but hope they find land.
moggio
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(06-25-2017, 10:24 AM)
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Lawd those poor saps who spent thousands of dolla$ on worthless ships.
iNvid02
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(06-25-2017, 10:24 AM)
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Originally Posted by Whales

Is this a joke..?

buy those ships son!

-duskdoll-
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(06-25-2017, 10:24 AM)
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Wow this came out of nowhere... I hope everything turns out alright.
Toni Codrea
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(06-25-2017, 10:25 AM)
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Originally Posted by thomasmahler

Man, some people spent thousands of dollars on starships that only work in a system that'll most likely never exist...

You have to be very dumb to spend thousands of dollars on digital goods that have a chance of never being useful.
cartoon_soldier
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(06-25-2017, 10:25 AM)
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This is what happens when you start a project with unlimited scope. Any crowd funded project that becomes highly successful at some point has to stop increasing scope.

The game was always in trouble, some people just didn't choose to believe it.
Shin
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(06-25-2017, 10:26 AM)
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Good way to waste 150m+, they got too carried away with the project.
Turin Turambar
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(06-25-2017, 10:26 AM)
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Originally Posted by -duskdoll-

Wow this came out of nowhere... I hope everything turns out alright.

Uhh.... literally the opposite of 'out of nowhere'.
panty
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(06-25-2017, 10:27 AM)
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Hahaha $150M pffff
moggio
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(06-25-2017, 10:27 AM)
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Originally Posted by Turin Turambar

Uhh.... literally the opposite of 'out of nowhere'.

IKR. It was obvious this game was a dumpster day 1.
Laplasakos
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(06-25-2017, 10:27 AM)
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Is there any chance a publisher could pick up the project and finish it instead of taking a loan from a bank?
gundamkyoukai
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(06-25-2017, 10:27 AM)
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Man that is crazy if this game in trouble.
Hell most big AAA games don't get that sort of money .
There management must be really fucking poor .
Last edited by gundamkyoukai; 06-25-2017 at 10:33 AM.
Crossing Eden
Hello, my name is Yves Guillemot, Vivendi S.A.'s Employee of the Month!
(06-25-2017, 10:28 AM)
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Wasn't this already addressed in the Star Citizen Verse Awakens thread?

Originally Posted by Primus

So, that loan thing? It is actually real, but as usual Derek Smart has no idea how finances actually work so is spinning this as some sort of proof that SC is failing.

Original Reddit Thread.

Coutts & Co. is the bank of the rich and powerful of the UK, and this includes the Royal Family. Being accepted as a client requires you to have at least £1,000,000 in investable assets, not including real estate. If CIG was really in any sort of financial dire straits, or even doing well but without the proper amount of assets, Coutts & Co. would not have extended the loan. That they did actually shows (once again Smart putting his foot in his own mouth via incomprehension) that CIG is in good financial standing.

As to needing a loan itself, big businesses take out loans all the time for various reasons. Here's an article from 2015 on Apple taking out a $6.5 million loan due to needing some cashflow in the US.

MKIL65
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(06-25-2017, 10:28 AM)
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This is easily 10x worse than Mighty No. 9.
cartoon_soldier
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(06-25-2017, 10:28 AM)
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Originally Posted by Laplasakos

Is there any chance a publisher could pick up the project and finish it instead of taking a loan from a bank?

Why would any publisher want to spend more money on this?
TheMoon
Quest Reward:
Eye of Webster
(06-25-2017, 10:28 AM)
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nvm
TheLegendaryN
Junior Member
(06-25-2017, 10:28 AM)
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Sorry but I can't stop laughing (and shaking my head). What a disaster this game is.
Shin
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(06-25-2017, 10:29 AM)
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Originally Posted by moggio

IKR. It was obvious this game was a dumpster day 1.

And yet people kept dumping money into it, either it was a damn good sales pitch or people were that blind to not see this coming.
RubberJohnny
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(06-25-2017, 10:29 AM)
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Originally Posted by Laplasakos

Is there any chance a publisher could pick up the project and finish it instead of taking a loan from a bank?

If CIG went bankrupt the assets would be up for sale, like what happened with Duke Nukem Forever. However, you don't always get a buyer, that Curt Schilling MMO that cost $110 million never got bought by another studio.

Originally Posted by Crossing Eden

Wasn't this already addressed in the Star Citizen Verse Awakens thread?

Yes, but it's a big story that could do with it's own thread.

The Apple comparison there is invalid, Apple didn't put all of their factories, studios, the Apple Brand and products up as collateral for that loan like CIG.
HawthorneKitty
Sgt. 2nd Class in the Creep Battalion, Waifu Wars
(06-25-2017, 10:29 AM)
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Originally Posted by TheMoon

nvm

lol u :3
GLAMr
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(06-25-2017, 10:29 AM)
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Originally Posted by Bold One

Say what you will about No Man's Sky, at least it came out.

Buuuuuurn!

Seriously though this is shocking. I have friends who have put some money into this game.
Chacranajxy
I paid good money for this Dynex!
(06-25-2017, 10:30 AM)
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Well, this is certainly going to be interesting.
GravityInsanity
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(06-25-2017, 10:30 AM)
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TomWaitsForNoMan
Junior Member
(06-25-2017, 10:30 AM)

Originally Posted by Crossing Eden

Wasn't this already addressed in the Star Citizen Verse Awakens thread?

Companies take out loans all the time, they don't usually mortgage the entire company on it though
Blobbers
(06-25-2017, 10:30 AM)
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maybe they shouldn't have hired big time actors like Gary Oldman and Gillian Anderson for their standalone game
RulkezX
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(06-25-2017, 10:30 AM)
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Be a huge disappoint if it's really in this much trouble , but things have been whiffy about the project for a while.

The fallout will be huge given how dedicated is fans are in defending it , if that fervour is turned back on CIG....
Napalm_Frank
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(06-25-2017, 10:30 AM)
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You could have funded Rap Rabbit with a fraction of that but instead we get this.

The darkest timeline.
Machina
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(06-25-2017, 10:30 AM)
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Originally Posted by Crossing Eden

Wasn't this already addressed in the Star Citizen Verse Awakens thread?

This is exactly why the first thread was locked, not a banned source
xyla
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(06-25-2017, 10:30 AM)
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It's about time they release this damn single player game at least.

I'd be fine if that's all that will make it out there, but we haven't seen it for about a year now.

All the best though, I want this game to succeed and at least release in parts.
Having only the alpha and nothing else to show would be a bit sad for me.
They seemed to get along 'just fine' with squadron 42 up to some time ago.
Soulblighter31
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(06-25-2017, 10:30 AM)
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Originally Posted by gundamkyoukai

Man that is crazy if this game in trouble.
Hell most big AAA games don't get that sort of money .


not most, i dont think any game cost this much strictly for development costs. The few games in history that have comparable costs, half if not more is for marketing.
SigSig
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(06-25-2017, 10:31 AM)
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A company taking a loan is in no way a sign of it being in financial trouble. Jesus, GAF.
moggio
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(06-25-2017, 10:31 AM)
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Originally Posted by RulkezX

Be a huge disappoint if it's really in this much trouble , but things have been whiffy about the project for a while.

The fallout will be huge given how dedicated is fans are in defending it , if that fervour is turned back on CIG....

Star Citizen fans are like this:

RubberJohnny
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(06-25-2017, 10:31 AM)
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Originally Posted by Machina

This is exactly why the first thread was locked, not a banned source

ModBot specified it was due to the banned source, and said the content could be reposted with a different source.
Laplasakos
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(06-25-2017, 10:32 AM)
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Originally Posted by cartoon_soldier

Why would any publisher want to spend more money on this?

To wrap up the project and hope that it sell well when they release it? The game definitely has potential.

Originally Posted by RubberJohnny

If CIG went bankrupt the assets would be up for sale, like what happened with Duke Nukem Forever. However, you don't always get a buyer, that Curt Schilling MMO that cost $110 million never got bought by another studio.

I see. Hope that things will turn out the best for them.
Mifec
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(06-25-2017, 10:32 AM)
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Originally Posted by Napalm_Frank

You could have funded Rap Rabbit with a fraction of that but instead we get this.

The darkest timeline.

Pretty fucking sure that's a win.
RollerMeister
Junior Member
(06-25-2017, 10:32 AM)
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The world's most expensive game never made
ColeTheMole
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(06-25-2017, 10:32 AM)
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I'm glad i got my 100€ refunded months ago. Maybe i get back in if this gets released.
Hyun Sai
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(06-25-2017, 10:32 AM)
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This outcome was sadly predictable many years ago. This project had "mismanagment" written on it in golden letters, and like some strange cult, people were pouring thousands and thousands of dollars on it.

What a mess.