Internet Companies going down the swanny - MAELSTROM GAMES

[inquisitorsog]

Wayland forced Maelstrom into an involuntary liquidation. Any creditors of Maelstrom got screwed.

It's pretty unlikely that Wayland actually made the situation better.

Per Simple Miniatures statement
"A repayment plan was then agreed which should have seen the debt reduced significantly beyond the point that it actually has been. Unfortunately many of these payments were consistently declined and at the last the payments were continually declined.
"It was around this point in conjunction with our reading into the accounts of Maelstrom Games that we contacted debt recovery and debt purchase specialists in order to take further action and begin the recovery of assets to cover some the debt."

If it is that simple, then SMG was already initiating a process whereby they would have forced Maelstrom to liquidate regardless. Wayland bailed out SMG from a significant hit as debt collection agencies rarely pay more than pennies on the pound. SMG's owners had given up a hefty portion of their own personal funds to foot the bill of Maelstrom's effective default. Wayland is acting out of mutual self interest, for sure, but SMG is the beneficiary of that. Who else is screwed by this, I don't know, but it sounds like any Maelstrom customers other than those buying their leftovers were already screwed. That likely means any other creditors were already screwed as well.

[Beagle]

Yet very few cases of liquidation are voluntary. Someone always owns your debt, and can call it in when terms of the contract are broken.

Surprisingly not true, at least here in the states and in my experience.

Most liquidations are voluntary (the company enters into it on their own accord) rather than involuntary (the company is forced into it by a creditor or judge). Most creditors won't push a company into liquidation because it's expensive and he's often worse off under a liquidation than he was as a creditor.