Acclaim losing fight against BattleBorne, considers bankruptcy

GAMING DEVELOPERS BATTLEBORNE ENTERTAINMENT announced that a preliminary injunction has been entered in its favour against long-running gaming company Acclaim. The injunction prevents Acclaim from shipping BattleBorne's Combat Elite: WWII Paratroopers PS2 and Xbox videogame.

The battle sued after BattleBorne Entertainment sued Acclaim for breaching a mutual development agreement - Acclaim allegedly failed to pay the company when due, and even threatened to release the game before all necessary payments were made, BattleBorn claims.

It's all bad news for Acclaim - the publisher reported a $25.4 million loss in its last quarter, and is in desperate need of new financing by August. The $25.4 million loss accounts for nearly half of Acclaim's total loss for its 2004 fiscal year.

Apparently Acclaim has found a possible lender for $30.0 million to replace its old credit agreement with GMAC - General Motor's investment banking sector, from which it has borrowed $5 million in short-term loans. However, if this new deal does not go ahead, the company might be forced to "cease operations or seek bankruptcy protection".

L'INQ
Gamespot article