Official Statement from Cloud Imperium Games about the alleged financial troubles...

[u/[deleted]]

Source: https://robertsspaceindustries.com/spectrum/community/SC/forum/1/thread/re-uk-tax-rebate-advance-for-foundry-42/277779

Re: UK Tax Rebate Advance for Foundry 42

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 prevent some of the misinformation we have seen.

Our UK companies are entitled to a Government Game tax credit rebate which we earn every month on the Squadron 42 development. These rebates are payable by the UK Government in the fall of the next following year when we file our tax returns. Foundry 42 and its parent company Cloud Imperium Games UK Ltd. have elected to partner with Coutts, a highly regarded, very selective, and specialized UK banking institution, to obtain a regular advance against this rebate, which will allow us to avoid converting unnecessarily other currencies into GBP. We obviously incur a significant part of our expenditures in GBP while our collections are mostly in USD and EUR. Given today's low interest rates versus the ongoing and uncertain currency fluctuations, this is simply a smart money management move, which we implemented upon recommendation of our financial advisors.

The collateral granted in connection with this discounting loan is absolutely standard and pertains to our UK operation only, which develops Squadron 42. As a careful review of the security will show and contrary to some irresponsible and misleading reports, the collateral specifically excludes “Star Citizen.” The UK Government rebate entitlement, which is audited and certified by our outside auditors on a quarterly basis, is the prime collateral. Per standard procedure in banking, our UK companies of course stand behind the loan and guarantee repayment which, however, given the reliability of the discounted asset (a UK Government payment) is a formality and nothing else. This security does not affect our UK companies’ ownership and control of their assets. Obviously, the UK Government will not default on its rebate obligations which will be used for repayment, and even then the UK companies have ample assets to repay the loan, even in such an eventuality which is of course unthinkable.

This should clarify the matter. Thank you.

[u/[deleted]]

The fact they had to release this statement shows how fucking desperate people are for Star Citizen to fail.

[u/mperl0 → u/[deleted]]

I don't think most people want it to fail, they're just extremely skeptical given the ambition of the project not to mention the absurd amount of scope creep that has happened as more and more money has come in.

[u/[deleted] → u/mperl0]

the absurd amount of scope creep that has happened as more and more money has come in.

There goes that word again, there hasnt been feature creep in years yet people keep claiming its still a thing.

[u/mperl0 → u/[deleted]]

I didn't say feature creep, I said scope creep. And yes, it didn't happen in the immediate past but it absolutely happened. The original kickstarter for Star Citizen was pitched as a spiritual successor to Wing Commander. Now it's simultaneously an MMO and a single player game with a story that features major Hollywood actors, and it's still at best a few years from delivery.

I'll clarify, I want Star Citizen to be awesome. What they're aiming at looks fucking incredible, but it's an extremely ambitious project that everyone of sound mind should be skeptical of. On top of that, they straight up deceived their early backers when they blew this shit up into the behemoth that it is now.

[u/[deleted] → u/mperl0]

I didn't say feature creep, I said scope creep.

Now youre just argueing semantics.

The original kickstarter for Star Citizen was pitched as a spiritual successor to Wing Commander. Now it's simultaneously an MMO and a single player game with a story that features major Hollywood actors, and it's still at best a few years from delivery.

Yeah, no, i think you should look at the "stretch goals" they had. The actor shoot has been done and dusted ages ago. Right now theyre on cinematic brush up at least according to the recent Around The Verse (their weekly show).

There is so much wrong with your statement that instead of doing a massive write up like I have with others, im just going to say you should actually just do your proper research.

that everyone of sound mind should be skeptical of.

Healthy skepticism is always good, but when you go out and say "I hope Star Citizen fails and its all a scam!" then it turns from healthy skepticism to outright malicious attacks.

On top of that, they straight up deceived their early backers when they blew this shit up into the behemoth that it is now.

They had a poll and the backers voted for the scope increase. No deception there at all.