Funcom’s bondholders unanimously agree to defer Funcom’s debts

Back in October, Funcom asked its bondholders to defer its debts another year, summoning those holders to a meeting to vote on a proposal that would “provide cash relief to Funcom N.V. in 2015 to allow for sufficient working capital.”

In light of that, these must be sweet words to read:

The bondholders’ meeting regarding convertible bond issue number ISIN NO 001 063043.7, summoned by Nordic Trustee ASA on behalf of Funcom N.V. was held today, 26 October 2015.

The meeting adopted all of the proposed resolutions.

In fact, it was unanimous.

There were sufficient Bondholders present at the meeting to form a quorum. The proposed resolution obtained 100% of the votes, and the proposal was adopted according to the voting requirements of the Bond Agreement. The Bond Agreement will therefore be changed as set out in the summons to the meeting.

Funcom lives another year.

Source: NewsWeb. With thanks to Sally for the tip.
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142 Comments on "Funcom’s bondholders unanimously agree to defer Funcom’s debts"

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Yangers
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Yangers

A+++++

evolv_monbly
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evolv_monbly

Nordavind good choice

JamesCrow
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JamesCrow

neserbohy manaek05 you talking about GW2?
the game with horrible story, boring leveling.. event the expansion that i bought not give me reason to comback.
and i played and loved GW1 for six years.

evolv_monbly
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evolv_monbly

wjowski Armsbend Gottphoenix i dont understand how amazon hasnt collapsed, or why people dont compare it to enron..
http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works

frzn
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frzn

*throws hat in air*

wolfyseyes
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wolfyseyes

They must have some pretty good plans for those holders to unanimously agree to a deferment. I’m both delighted that Funcom soldiers on and curious what comes next.

Mailvaltar
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Mailvaltar

Great news!

shadowblender
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shadowblender

Funcom needs to live even for the fact that is one of the companies that don’t focus on the new wave of ”quick cashgrab games” like for mobile or card games.

Even Blizz puchased for shiloads of billions candy crush and will likely focus on mobile and heartstone cashgrabs.

Ekphrasis
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Ekphrasis

Good news – Funcom showed us what it could do with TSW (and AoC, AO) and more recently, The Park. There is some serious talent here.
In my opinion, they don’t just create games – they create amazing experiences.

Their MMOs need just a wee bit more fine tuning (TSW’s combat for instance) but I’m grateful for the fact they haven’t jumped on the bandwagon of creating shallow WoW clones or yet another stereotypical fantasy MMO that checks the boxes. Not that there’s anything wrong with that – I just love the fact that Funcom brings us variety and great quality.

Looking forward to seeing them get back on track and continue bringing us great things over the next 12 months – and beyond.

neserbohy
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neserbohy

manaek05  Most MMOs are pathetic, unstable buggy piece of shit at release. Of all the MMOs I’ve been playing, GW2 was most polished straight out of the box, and even that one had its share of problems.

mysecretid
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mysecretid

Koshelkin

Apparently, the poster was playing a different game called The Secret World on launch day than the rest of us. Like you, I saw some problems, but no more than one could reasonably expect from any game on launch day. Nothing catastrophic.

And “fairly playable”? As Shakespeare wrote, let’s “tell the truth and shame the devil” here — technically-speaking, The Secret World’s graphics are old at this point, even by MMORPG standards … but the game has a pleasing art style overall, and manages to transmit character and emotion well with the graphics it does have.

As you say, if someone’s having problems running The Secret World at this point in the game’s lifespan, they need to look at their hardware, not the game.

People have the right to dislike whatever games they want, but don’t piss on our heads and try to tell us it’s raining …

wjowski
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wjowski

Armsbend Gottphoenix 
Not hard to do considering Amazon’s never turned a profit since it first launched.

Koshelkin
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Koshelkin

manaek05 “The Secret World, at release, was a pathetic, unstable buggy piece of shit.” 
That’s such utter nonsense. I had problems with a handful of quests, and when I say handful I mean it like that, besides that the game ran smooth and I had no problems. No login problems, no latency problems, no performance problems, de nada.
“Fairly playable” is also an absolute understatement. What sort of rig are you playing on? A 4yr old+ Walmart rig?

Vexia
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Vexia

Yay! Glad to hear this news for all the people living and playing in Funcom’s games. :)

PaganRites
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PaganRites

Great news for a troubled company that makes great games.  So happy for the TSW most of all.  Easily one of the best MMOs on the market and in the history of the genre.

Armsbend
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Armsbend

thatchefdude I know.  People are now using King as some horrible decision based purely on emotion.  They literally make more profit  than Amazon – a $89B revenue company.  Granted – there are many more subtleties (and not so)  with what Amazon is trying to accomplish but still.

thatchefdude
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thatchefdude

Armsbend Gottphoenix Funcom is actually profitable, they just have a massive cash flow problem and short term debt obligation problem….
It’s very possible, actually, pretty frequent for a company to be profitable (net profit is positive after all expenses, salaries and cost of operations/goods sold) while still being unable to pay creditors smoothly due to a lack of appropriate liquid funds…
You see this a lot especially with companies involved in Real Estate Holdings, where they can have a huge amount of profit on purchases and flips, but the money is mostly tied up in land or real estate, and thus believe it or not, you can find financial statements for some good size companies where they will have let’s say $50M in real estate holdings, but only $500k in liquid cash operating account, which can in certain circumstance go very fast depending on the nature of their business.

If they are given time, I have no doubt Funcom can get more liquid and start converting some of its profitability into cash to pay its creditors and or shareholders if its a public company.

zoward
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zoward

Whew, maybe I’ll be able to make it to Tokyo and try out that sweet hoverboard I bought on faith a couple of months ago.

Dajhryne
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Dajhryne

Wandris Gottphoenix  This seems to be both their blessing and curse. If I had a dollar for every time I’ve heard someone say, “This isn’t like InsertOtherGameNameHere. I don’t like it.” about their games I could personally bail Funcom out myself.

MontjoyOnew
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MontjoyOnew

Yay! …that about covers it

Wandris
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Wandris

Gottphoenix It is crazy, funcom does quite a bit to make unique and interesting games, alot of what they have done is pretty original and not just another rehash of the standard mmo game design and they get rewarded with financial ruin. 10 million is undervalued imo, TSW, AOC and AO are games I still look forward to playing when i get the time too, and hopefully they will be around in another 10 years. It is just a damn shame that such good games hardly earn enough to keep the company going.

Armsbend
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Armsbend

Gottphoenix King makes more profit than Amazon.

Gottphoenix
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Gottphoenix

some shitty mobile game gets bought for over 5 billion by activblizz and funcom is valued at 10 million and doesnt get bought. What a world we live in.

jefreahard
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jefreahard

Glad to hear it. AO is on my (very) short list of favorite MMOs, and I spent dozens of enjoyable months in both AoC and TSW.

manaek05
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manaek05

Well, it makes sense from their perspective. Funcom has accumulated massive debt, and in case of shutdown – unlikely that even full assets selloff would repay them. So, it was either give them debt relief and chance to rebound, or to pull the plug and eat the financial losses. 

That said – lets be honest, folk. Its delaying the inevitable. Funcom is experiencing the so-called “death spiral” of business – their current projects don’t earn enough money, they are constantly cutting and scaling back, and that means even less content, less profit opportunities and even less money earned. Sad but true.

Eliandal
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Eliandal

Very good news for all those that enjoy Funcom games!  Just because I’m not one of them, doesn’t mean I can’t be happy for them!  Diversity is GOOD!

MaxSand
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MaxSand

Cyclone Jack Flimflamberge MaxSand New England is very memorable in general but I can agree, there could be some cool stories to tell in Egypt, Transylvania and Tokyo as well.

Kanbe
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Kanbe

Yes! Great news

melissaheather
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melissaheather

seems appropriate, a terrific song by PINK, “I’m Not Dead”
https://www.youtube.com/watch?v=TWvnm6yb_jE

melissaheather
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melissaheather

mysecretid Estranged yet they happily play wizard101 and other games for months/years…

Tandor Shadewalker
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Tandor Shadewalker

I’m delighted with the news, both for all who work at Funcom and for all their players. Hopefully it will encourage me to get back to TSW which I’ve neglected for far too long! If only I had as much time for gaming in retirement as I had when I was working :)!

aboomwithaview
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aboomwithaview

thatchefdude Gibbins
As others have mentioned, all of Funcoms “big 3” are cash positive & the regular performance notes for AoC are that it continues to buck the trend in their predictions for mmo depreciation over the long term.
I like both TSW & AoC so hate people getting into this type of discussion BUT both of the titles have hit Funcom hard financially, AoC fell at the start & fraudulent activities surrounding TSW’s launch are still having repercussions with the fines & penalties imposed in recent years.

I have no doubt that TSW is at the forefront of any restructuring they intend to do & wisely so as its their IP lock stock, while AoC’s licence expires in a few years & with the code being what it is for AoC its just not worth the investment.

As for the Lego game that was just a complete waste of time/money, they missed the boat on the Lego fanaticism that hit a few years back & its cost them dearly. The Park was already noted in one of the quarterly reports as more of them testing the waters so they werent expecting huge revenues for it, In that I hope they are wrong as its been widely well received.

Overall I would say Funcom really need to keep this current trend of community interaction/promotion going as in the past they have had reactions that are geographical in time frame. That combined with some smaller single player “experiences” & maybe a reworking of their subscription models (maybe an all access?) AoC becoming properly F2P & just paid expansions etc an they may have a chance.

Fingers crossed for them, Funcom have some great talent there & brilliant ideas that just always seems to get lost between the devs & the boardroom.

mysecretid
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mysecretid

Estranged 
My buddy has a couple of young sons who are LEGO fanatics (the dad is a fan also). 
I remember him telling me that his boys were super into the game — for a week — and then they drifted off to do other things because, well, they’re kids, y’know?
Two weeks on, Dad was the only one touching the game. About the third (fourth?) week one of the boys remembered the game, and played it a little, but my friend had cancelled the sub by month’s end.

Betting on “player retention” among gamers under the age of 13 may not have been the safest of bets. ;-) 

Cheers,

Estranged
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Estranged

LEGO seems good in theory. Building structures with them online is not! Phallics everywhere!

Enikuo
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Enikuo

That’s great news. I picked up The Park and we played it as a group on Halloween. I was skeptical when they announced it, but it turned out great. I hope they put some more single-player experiences like that.

crawlkill
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crawlkill

so I guess we all have to give Funcom a bunch of money now = I haven’t played Dark Below yet. I guess I could throw em some change. anyone want a 10.4ish DPS in US time zones?

blaaznar
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blaaznar

Estranged People making decisions in that company are high on meth or what?

mysecretid
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mysecretid

SomewhatEclectic 
Heh. By way of apology, I can only suggest you check out Planetbase on Steam. It’s relatively cheap, and you can play it casually, or intensely, as your schedule allows.
If you’re into builder/”ant farm” games, it might be for you. It’s a hidden gem I’m glad a took a chance on playing.
Your mileage may vary, of course,
Be well,

SomewhatEclectic
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SomewhatEclectic

mysecretid Indeed. Would that we all had those sorts of “problems”.

breetoplay
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breetoplay

DemonicPossession Discussions of bad design choices, sure. Personal attacks, namecalling, not a chance.
Even the former seems tasteless for this particular thread, though.

mysecretid
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mysecretid

Flimflamberge 
I hear you (and thank you), but I neglected to mention that I’m also trying to play the single-player games Civilization; Beyond Earth — Rising Tide (commonly known as BERT, because that title is ridiculously long) and the cool little space colony builder game, Planetbase, that I got from Steam. 
Side Note –> If you like that sort of thing, I recommend Planetbase — you’ll die a lot at first (play the tutorial a couple of times!), but once you figure out build orders which work for you, it’s a fun little SF ‘ant farm” game.
Point being, I do want to play The Park, and I will get to it — but I’ve suddenly gone from months of not having enough interesting games to play, to having too many interesting games I want to play in the time available.
These are not bad “problems” to have, I know, but The Park will have to wait a bit longer. :-)

Thanks for the reply,
Be well,

Estranged
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Estranged

The LEGO game was a financial disaster.

luxundae
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luxundae

Awesome news!   Or, as Kirsten Geary would say:  “Hahahaha.  That’s amazing!  It’s like Paris Hilton and Snoop Lion teamed up to do some geomancy.”

Zardoz1972
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Zardoz1972

I agree that it is both. I played The Park and I enjoyed it. But it is an interactive movie, not a.game. It is also more sad than scary. It is a psychological journey. I recommend it, but people need to be aware of what they are buying.

Syco_at_Twitch
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Syco_at_Twitch

DemonicPossession Syco_at_Twitch mysecretid BalsBigBrother I am not saying you are i am just saying you’d think they’d be out of debt  by now if they were turning a decent amount of profit

DigitalQ
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DigitalQ

I started TSW on Halloween (Finally!) and I have to say I love this game so much..i find myself thinking about it all day really..the story and crazy NPCs it is so different from everything out there without a huge learning curve..This is great news..*Happy Dancin’* =)

Zardoz1972
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Zardoz1972

All true

Zardoz1972
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Zardoz1972

You two guys need the /anal emote in game to celebrate your friendship.

Syco_at_Twitch
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Syco_at_Twitch

DemonicPossession Syco_at_Twitch mysecretid BalsBigBrother If they were turning profit wouldn’t they be out of debt by now? the only thing worth while in tsw cash shop is the dlc honestly. I love cash shops and i can say they honestly have the worse one i’ve seen in a while

Syco_at_Twitch
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Syco_at_Twitch

Flimflamberge Syco_at_Twitch Because he acts like some one having a difff opinion then him is breaking the law

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