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OnLive was deep in debt, running out of cash, and 'had days to live'

Before a major shakeup that resulted in OnLive firing its entire staff last week, the online gaming company was in greater financial trouble than was previously known.

The Palo Alto, Calif.-based company owed creditors between $30 million and $40 million, with little cash on the books to pay them, and was facing imminent shutdown, according to the San Jose Mercury News.

"It was a company that was in dire straits. It only had days to live in terms of cash flow and the like," Joel Weinberg, CEO of Insolvency Services Group, told the the Merc's Troy … Read more

SpiralFrog owes $34 million. Investors get nothing?

Attorneys representing defunct music service SpiralFrog have notified investors not to expect any returns. Whatever money comes from liquidating assets will go to a group that loaned the company an "amount exceeding $34 million."

In a letter dated March 17, 2009, the law firm Rattet, Pasternak & Gordon-Oliver delivered that message to an undisclosed number of SpiralFrog investors. A copy of the letter, seen by CNET News, says the group that loaned the money was issued senior secured notes, which gives members of the group priority in any funds collected from the sale of assets.

"In that … Read more