Embattled online games group Zattikka plc has entered administration, after failing to pay off its debts.
The company announced in July it was struggling to meet a loan payment of £275,000 to subsidiary developer Hattrick Europe Limited, and was given a deadline of August 2nd to make the payment.
David Dunckley and Ian Corfield of Grant Thornton UK LLP were appointed as joint administrators on 5 August, with the intention of restructuring the company. The administrators were also appointed to Hattrick Europe Limited on the same day.
Zattikka was advised not to make the August loan payment because it could cause problems if the business should enter administration.
A statement on the company’s website said: “The directors of the company have received advice that the company should not make the interest payment at this time, as this may, should the company enter into administration, constitute a preference under the Insolvency Act 1986.”
Zattikka was incorporated on 16 November 2011 and its shares were admitted to trading on the London AIM on 16 April 2012. It floated on the AIM stock exchange at a market cap of £22 million, now valued at £330,000.
Its shares were suspended from trading on 29 July 2013 following a request from the company.
Zattikka games studios include Sneaky Games (USA), Spellgun (USA and China) and Hattrick (Europe).
The London-based business has sold off assets related to Hattrick Holdings, a Swedish start-up it acquired at the same time as Sneaky Games. The assets will be purchased by Hattrick Limited – a group formed by previous shareholders in Hattrick Holdings.
It has also agreed to sell Arena of Heroes developer Sneaky Gaming LLC to Seal Gaming, and the animation studio Concept Art House to CAH Holdings Group Inc. in a bid to settle the debts.