The French publisher Nacon made an unexpected announcement, which came as a surprise considering Nacon‘s games.
On February 20, Nacon announced that the situation of its majority shareholder, Bigben Interactive, was significantly affecting its own operations. Following an unexpected and late refusal by its banking pool, Bigben Interactive was unable to make the partial repayment of its bond loan to its bondholders. On this occasion, the company indicated that its liquidity situation required the rapid implementation of a financial restructuring with its creditors to ensure the continuity of its operations. The company also stated that it was considering court-supervised procedures to facilitate the restructuring of its debt.
To date, the company reports that its available assets do not allow it to meet its liabilities as they come due. In this context, the company will file for insolvency and request judicial reorganization proceedings. The aim of this procedure is to assess all possible solutions to ensure the company’s sustainability under the best possible conditions, protect employees, and preserve jobs while renegotiating with creditors in a calm, constructive framework. The procedure will allow the company to continue operating, renegotiate its debts, and develop a credible and effective continuation plan.
On February 24, the employee representative organizations were informed of this decision. At a hearing expected in early March, the court will rule on the request to open judicial reorganization proceedings. Given the uncertainties regarding the outcome of the proceedings and pending this decision, the suspension of the company’s share price, announced on February 20, remains in effect. The company will keep the market informed as the situation and proceedings develop.
Judicial reorganization proceedings are collective procedures that freeze existing liabilities at the opening of the proceedings for the duration of the observation period, which can last up to 18 months. These proceedings allow the debtor to present a plan to continue its activities by restructuring its debt and ensure its recovery.
Nacon Connect will take place on March 4. Afterwards, it will be interesting to see which projects will be canceled because that is definitely how this will end.
