Nacon files for insolvency as company's future hangs in balance

Nacon has confirmed it has filed for insolvency and has requested the initiation of judicial reorganisation proceedings.

Nacon is a French video games publisher, holdings company and gaming peripherals manufacturer that's a spin-off business owned by Bigben Interactive, a major multimedia company.

Nacon manufactures a number of peripherals such as headsets and controllers and has published games in the WRC series, Test Drive Unlimited, and RoboCop: Rogue City.

But in a release, Nacon confirmed it has filed for insolvency, meaning it cannot pay off its debts when they fall because the amount they owe is greater than the assets they have, due to Bigben Interactive failing to make a loan repayment.

The release said: "On 20 February, Nacon announced the situation of its majority shareholder, Bigben Interactive, which, following an unexpected and late refusal by its banking pool, was unable to make the partial repayment of its bond loan to its bondholders, was significantly affecting its own operations.

"The Company indicated on this occasion that its liquidity situation required the rapid implementation of a financial restructuring with its creditors in order to ensure the continuity of its operations and that it was considering procedures intended to facilitate the restructuring of its debt under the supervision of the Court.

"To date, the Company reports that its available assets do not allow it to meet its due liabilities."

Nacon has filed for insolvency / Nacon

Requesting the initiation of judicial reorganisation proceedings is a legal mechanism to avoid bankruptcy where, in this case, Nacon is in financial difficulty but has asked the court to protect them from the individuals or companies it owes money to while it restructures.

It's not known exactly what the future holds for Nacon's employees, developers and products but if the application is successful, the company hopes to continue as close to normal as possible.

"The aim of this procedure is to assess all possible solutions to ensure the sustainability of the Company's activity under the best possible conditions, protect employees and preserve jobs while renegotiating with its creditors in a calm and constructive framework," said Nacon.

"This procedure will enable the Company to continue its business, renegotiate its debts and develop a credible and effective continuation plan. The employee representative organisations were informed of this decision on 24 February."

A court hearing is expected in early March when this request will be ruled upon. Nacon's share price was suspended on 20 February and remains this way at present.

This comes as a Nacon Connect event, scheduled to take place on 4 March, is being hosted to show off what the projects the company has been working on.

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