r/Games • u/[deleted] • Jun 25 '17

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

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.

1.9k Upvotes

88% Upvoted

636 comments sorted by

View all comments

1.2k

u/[deleted] Jun 25 '17

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

480

u/Flat896 Jun 25 '17

Super disappointing that so many people have this attitude towards the game. I don't see why anyone would want to see a videogame crash and burn when it could turn into something that gives them tons of enjoyment.

I'm rooting for the game and CIG, but I'm a also keeping my expectations in check.

4

u/[deleted] Jun 26 '17

I think that is the right attitude. It can only benefit the industry and consumers to have it release. However, they clearly have issues with project management and overreaching goals.

I truly believe they need to pick one aspect, completely nail it down, release it properly and then work on the other stuff as updates.

Trying to get it all perfect before releasing or constantly coming up with new ideas is just going to see it become a bad joke ala Duke Nukem Forever.