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Foundry 42, Cloud Imperium subsidiary, takes a loan and puts EVERYTHING as collateral

zMeul
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Posted (edited)

source: application-pdf.pdf

 

this is nuts! CiG got 150mil$ just from crowdfunding, 25 times more than their initial goal, and still they need more

 

that loan must be a hell lot of money for CiG to put everything on the table - they're either very confident or utterly retarded

and if I'm reading the document right, Cotts&Co will own everything if CiG will miss a single pay - I wonder what the backers are thinking now; I don't understand how so many people still trust CiG ... 

 

---

 

for the people who can't be bothered to use google and search who / what this is all about

 

Star Citizen - game in development at Cloud Imperium Games (CiG) under the leadership of Chris Roberts; the game should be the spiritual successor of Wing Commander

Foundry 42 - CiG's subsidiary in UK, also taking part in the game's development

Coutts&Co - part of the The Royal Bank of Scotland group, it's a private financial institution (bank)

 

---

 

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

 

Quote

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.  

 

but begs the question: if that money was coming anyway, why take a loan?

did they needed that influx of cash that badly? and why put everything as collateral if that tax rebate is a guarantee o.O

Edited by zMeul
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Posted

broken source

I spent $2500 on building my PC and all i do with it is play no games atm & watch anime at 1080p(finally) watch YT and write essays...  nothing, it just sits there collecting dust...

Builds:

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The original LAN PC build log! (Old, dead and replaced by The Toaster Project & 5.0)

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#1. Treat others as you would like to be treated.

#2. It's best to keep your mouth shut; and appear to be stupid, rather than open it and remove all doubt.

#3. There is nothing "wrong" with being wrong. Learning from a mistake can be more valuable than not making one in the first place.

 

Follow these simple rules in life, and I promise you, things magically get easier. " - MageTank 31-10-2016

 

 

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6 minutes ago, Bananasplit_00 said:

broken source

works for me just fine

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2 minutes ago, zMeul said:

works for me just fine

temp.PNG.10ab7636be456d0e1075674d8154a540.PNG

 

this is what everyone else is getting

I spent $2500 on building my PC and all i do with it is play no games atm & watch anime at 1080p(finally) watch YT and write essays...  nothing, it just sits there collecting dust...

Builds:

The Toaster Project! Northern Bee!

 

The original LAN PC build log! (Old, dead and replaced by The Toaster Project & 5.0)

Spoiler

"Here is some advice that might have gotten lost somewhere along the way in your life. 

 

#1. Treat others as you would like to be treated.

#2. It's best to keep your mouth shut; and appear to be stupid, rather than open it and remove all doubt.

#3. There is nothing "wrong" with being wrong. Learning from a mistake can be more valuable than not making one in the first place.

 

Follow these simple rules in life, and I promise you, things magically get easier. " - MageTank 31-10-2016

 

 

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1 minute ago, Bananasplit_00 said:

 

 

this is what everyone else is getting

 

OP changed the source 

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Posted

PDF link loads for me.

 

As for the loan, that they put their IP up as collateral isn't the "end of the world", but it's also probably a last-ditch effort to keep themselves afloat. 

 

This project has been understood by industry types to be a failure for a couple of years. It's sad, but that's also why you need a good producer.

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1 minute ago, zMeul said:

@Bananasplit_00 @Nicholatian

I've now uploaded the pdf right here on the forums

ok now explain this maddness lol. sounds crazy AF

I spent $2500 on building my PC and all i do with it is play no games atm & watch anime at 1080p(finally) watch YT and write essays...  nothing, it just sits there collecting dust...

Builds:

The Toaster Project! Northern Bee!

 

The original LAN PC build log! (Old, dead and replaced by The Toaster Project & 5.0)

Spoiler

"Here is some advice that might have gotten lost somewhere along the way in your life. 

 

#1. Treat others as you would like to be treated.

#2. It's best to keep your mouth shut; and appear to be stupid, rather than open it and remove all doubt.

#3. There is nothing "wrong" with being wrong. Learning from a mistake can be more valuable than not making one in the first place.

 

Follow these simple rules in life, and I promise you, things magically get easier. " - MageTank 31-10-2016

 

 

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Posted

Proper way of doing news

Who

What

Where

When

Why

How

 

Who the hell are they and why is this even news?

Is this news to 13 year olds or mature adults?

 

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1 minute ago, NumLock21 said:

Proper way of doing news

Who foundry 42

What news

Where earth

When now, cause this is news

Why money

How crowdfunding

 

Who the hell are they and why is this even news?

Is this news to 13 year olds or mature adults?

 

 

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150 mil might be a lot, but in big game development it is not that high. Some games have used bigger budgets.

if you want to annoy me, then join my teamspeak server ts.benja.cc

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13 minutes ago, NumLock21 said:

Who the hell are they and why is this even news?

everything to know is in the title and in the body of the OP

if that's not enough to understand who/what ...

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1 minute ago, The Benjamins said:

150 mil might be a lot, but in big game development it is not that high. Some games have used bigger budgets.

that's only what they got from crowdfunding and not the other millions they got from subscriptions and make-belief ship sales

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2 minutes ago, zMeul said:

everything to know is in the title and in the body of the OP

if that's not enough to understand who/what ...

Who is foundry 42 and cloud imperium? Does this news affect the entire tech industry? "Nand shortage" is news. What is this?

Just looked up Foundry 42 and it's a fu*king Art Cafe... 

Intel Xeon E5 1650 v3 @ 3.5GHz 6C:12T / CM212 Evo / Asus X99 Deluxe / 16GB (4x4GB) DDR4 3000 Trident-Z / Samsung 850 Pro 256GB / Intel 335 240GB / WD Red 2 & 3TB / Antec 850w / RTX 2070 / Win10 Pro x64

HP Envy X360 15: Intel Core i5 8250U @ 1.6GHz 4C:8T / 8GB DDR4 / Intel UHD620 + Nvidia GeForce MX150 4GB / Intel 120GB SSD / Win10 Pro x64

 

HP Envy x360 BP series Intel 8th gen

AMD ThreadRipper 2!

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2 minutes ago, NumLock21 said:

Who is foundry 42 and cloud imperium? Does this news affect the entire tech industry? "Nand shortage" is news. What is this?

Just looked up Foundry 42 and it's a fu*king Art Cafe... 

Yes, it's news, just because you're not invested in the game doesn't negate that fact. Not sure why your Google skills are so weak but the first 5 results are all Cloud Imperium Games for me. 

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6 minutes ago, NumLock21 said:

Who is foundry 42 and cloud imperium? Does this news affect the entire tech industry? "Nand shortage" is news. What is this?

Just looked up Foundry 42 and it's a fu*king Art Cafe... 

mate ...

if you do not know who Cloud Emporium, Star Citizen is that doesn't mean this isn't news

who Foundry 42 is, is explained directly into the title

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15 minutes ago, dizmo said:

Yes, it's news, just because you're not invested in the game doesn't negate that fact. Not sure why your Google skills are so weak but the first 5 results are all Cloud Imperium Games for me. 

Google gave me that cafe as first result.

 

 

10 minutes ago, zMeul said:

mate ...

if you do not know who Cloud Emporium, Star Citizen is that doesn't mean this isn't news

who Foundry 42 is, is explained directly into the title

Mate 

Should have that background about who they are and what they are known for in your OP from the start, instead of wasting other people's time looking it up in order to get some sort of sense on what your reporting about. 

Intel Xeon E5 1650 v3 @ 3.5GHz 6C:12T / CM212 Evo / Asus X99 Deluxe / 16GB (4x4GB) DDR4 3000 Trident-Z / Samsung 850 Pro 256GB / Intel 335 240GB / WD Red 2 & 3TB / Antec 850w / RTX 2070 / Win10 Pro x64

HP Envy X360 15: Intel Core i5 8250U @ 1.6GHz 4C:8T / 8GB DDR4 / Intel UHD620 + Nvidia GeForce MX150 4GB / Intel 120GB SSD / Win10 Pro x64

 

HP Envy x360 BP series Intel 8th gen

AMD ThreadRipper 2!

5820K & 6800K 3-way SLI mobo support list

 

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9 minutes ago, NumLock21 said:

Should

should ?! how hard is it to google Start Citizen, Foundry 42 or Cloud Imperium ?

literally the 1st result of googling Foundry 42 gets you to Cloud Imperium Games

 

so it the news is about NAND, everyone reading it should know exactly what NAND is?! xD

 

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1 hour ago, zMeul said:

that's only what they got from crowdfunding and not the other millions they got from subscriptions and make-belief ship sales

Actually, that 150 million is WITH the ships sales:P

(I havent heard of the subscriptions before)

“Remember to look up at the stars and not down at your feet. Try to make sense of what you see and wonder about what makes the universe exist. Be curious. And however difficult life may seem, there is always something you can do and succeed at. 
It matters that you don't just give up.”

-Stephen Hawking

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41 minutes ago, NumLock21 said:

Google gave me that cafe as first result.

 

 

Mate 

Should have that background about who they are and what they are known for in your OP from the start, instead of wasting other people's time looking it up in order to get some sort of sense on what your reporting about. 

The point something has a dedicated subforum on these very forums is when putting that info in the OP is no longer needed.

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31 minutes ago, zMeul said:

sure .. how many game development companies take loans and put everything as collateral ?!

This isn't a "last minute/save the company" type of loan, but it's much more of a "12-month warning" type of loan.  So a final collapse wouldn't be until next year, more than likely.

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Reddit shows it as a 2.25% interest rate loan that is not officially in the books. 

 

 

Blizzard eventually gave up on this sort of AI filled MP universe with project titan. So as long as everyone keeps falling on themselves to buy power creeped ships in a prerelease game I don't worry. The studio seems to be doing things right in working on a lot of backend things. They could have rushed out a barely functioning game and promise features to be added over time. 

 

What I  do worry about is the move towards eve 0.0 space empires and not having an AI filled 'Verse. Then the game becomes the same barren place of all the MP games. The space fighter portion still feels painfully bare and I was disappointed in the FPS portion. It may just be my age and never being a big FPS player. I was hoping for more wwiionline get shot and you are dead play not CoD retread. 

 

I will patiently wait to make my milk runs through the UEE. I can only hope the tea pot heretics out of Terra do not rip the imperium apart. 

 

Yours in the light of the one true Lamp,

a Star Citizen backer who hasn't given money in ages. 

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