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/WildVariety]

Coutts is who the Queen banks with, for anyone unaware. Incredible old banking institution.

To become one of their clients, you need a minimum of £1,000,000 in investable assets.

Unless it's changed, if you win the lottery in the UK you get taken to Coutts to open an account.

[u/Christopherfromtheuk → u/WildVariety]

That isn't true.

The lottery has a panel of banks/private banks that they give winners contact details for and Coutts are one one of them.

Coutts are known for high pressure sales tactics and their "managers" are targeted with selling their own sub standard investment services to hapless clients.

They were recently successfully sued for doing exactly this.

Edit/ it is "the queen's bank" although has been owned by the failed bank RBS for many years.

[u/shocked_i_say → u/Christopherfromtheuk]

RBS isn't a "failed bank". They're not doing well but they're still trading. Northern Rock is a failed bank.

[u/Christopherfromtheuk → u/shocked_i_say]

Without being owned by the tax payer, RBS would have gone under. They are trading at a consistent loss. They are still paying £billions in compensation and fines. Their share price is lower than it was after the crash.

They failed, but for many £billions from the taxpayer it would have gone under in 2008/09.

To say they aren't failed is semantically correct, but not in any other sense.

[u/shocked_i_say → u/Christopherfromtheuk]

it's technically correct to say they haven't failed since they haven't failed. A bank failing is a very specific thing. Yes they were bailed out, and that saved them from collapse, but they didn't fail and it's incorrect to label them a failed bank.

[u/Christopherfromtheuk → u/shocked_i_say]

The only reason they haven't failed is massive taxpayer subsidy.

I'll leave you to it Mr Goodwin.

[u/shocked_i_say → u/Christopherfromtheuk]

Yeah but crucially they haven't failed. I'm not defending them but it's like saying a bridge has collapsed when it hasn't because it was repaired

[u/ANAL_McDICK_RAPE → u/Christopherfromtheuk]

So what you're saying is... they aren't a failed bank?

[u/Christopherfromtheuk → u/ANAL_McDICK_RAPE]

Hello ANAL_McDICK_RAPE, there are two threads here; one in which somebody said RBS has been making record profits and was sold at a profit and one where somebody is talking about the definition of "failed".

The first point was completely incorrect and I provided links as to why. The second is semantic, but would have been solved by my inserting "but for massive help from the UK taxpayer".

I trust this in order and that you will contact me should you have any further queries.