81–85 of 85 posts
They already released a response, but it's kinda sad that they have to justify stuff like this to "journalists" all the time.
https://robertsspaceindustries.com/spectrum/community/SC/for...
EVERYBODY PAUSE! This is not abnormal at all (in itself). If you were going to lend money to a software company, what else would you take as security other than IP? A floating charge is just there to establish the bank as a preferential creditor in case they default. Otherwise if the company became insolvent, the bank would only be entitled to its share of what is left of the assets in proportion to what they had len…
CIG have just released a statement regarding this ( https://robertsspaceindustries.com/spectrum/community/SC/for... ). Pasted below for those who can't or won't visit the previous link: Ortwin: We have noticed the speculations created by a posting on the website of UK’s Company House with respect to Coutt’s security for our UK Tax Rebate advance, and we would like to provide you with the following insight to help pre…
EVERYBODY PAUSE! This is not abnormal at all (in itself). If you were going to lend money to a software company, what else would you take as security other than IP? A floating charge is just there to establish the bank as a preferential creditor in case they default. Otherwise if the company became insolvent, the bank would only be entitled to its share of what is left of the assets in proportion to what they had len…
tl;dr It's an advance on a tax rebate (for SQ42 development) and avoiding currency conversions. The collateral specifically excludes Star Citizen. The primary collateral is the tax rebate which the UK government probably isn't going to default on.
The fact that any bank considered lending to a tiny company like this with no revenue stream is actually a positive sign. As for pledging all their "assets", that is completely standard. They have no assets to speak of - their "IP" is 100% worthless without future sales, which will never happen if the game doesn't get released. And further, because the money was raised from crowdfunding, the only equity holders that…