Tech company Bigben and its subsidiary Nacon, known for their games and controllers, are in trouble. Following a failure to repay creditors, financial restructuring is intended to help.
43 million euros were actually due on February 19. Bigben was supposed to repay this sum to its bond creditors, but was unable to meet the agreement. A failure with consequences: the French company’s share price slumped by 42 percent within a few days. This was the low point of a years-long decline. However, it is not only Bigben itself that is affected, but also its subsidiary Nacon. The exchangeable bonds were based on Nacon’s common shares, and Bigben was unable to guarantee their refinancing, which is why both companies ran into financial difficulties.
Nacon feels “significant impact”
According to a statement, the situation has had a “significant impact on its own activities.” The current liquidity situation requires “the rapid implementation of financial restructuring.” Otherwise, the continuation of day-to-day business cannot be guaranteed.
To free itself from this predicament, the RENNSPORT publisher kept open the option of restructuring its debt. This is a procedure that parent company Bigben is also pursuing. The company has already entered into initial discussions with its main creditors and financial partners, which is why trading in shares and bonds has been temporarily suspended. The financial difficulties of the French video game giants could also have an impact in Germany. Both companies have local subsidiaries.