Interplay's position unclear as Titus is declared bankrupt

Embattled publisher Titus Interactive has finally reached the end of the line, with a French district commercial court declaring the company bankrupt - raising questions over the future of subsidiaries such as Interplay.

Titus, which had debts of around 33 million Euro, was in protected receivership - redressement judiciaire - which gave it until early next month to implement a plan which would allow it to continue trading, but the judge presiding over the case chose to roll up the company's affairs early instead.

"Titus was unable to finance any new games," he explained to French newspaper La Tribune. "There was no hope of financial rectification."

Following the decision, all of Titus' French subsidiaries - Sofra Jeux, GIE Titus Interactive, and distribution firm Avalon France - will be placed into redressement judiciaire, in the hope that some of them may continue trading.

However, the situation regarding the firm's overseas subsidiaries is less clear; the company owned firms all over the world, including British distribution firm Avalon Interactive and much-diminished US publisher Interplay, in which Titus held a 67 per cent controlling stake.

For now, it's expected that these companies will continue to trade as before in the absence of their parent firm, although ultimately Titus' holdings in them will presumably be liquidated in order to pay off the company's creditors.

Interplay in particular is in a weak position, as Titus boss Herve Caen has already comprehensively asset-stripped the company, once considered one of the A-list of publishers in North America.

With rights to most of its franchises already sold off, Interplay is left with properties such as Kingpin and Dark Alliance, albeit without the Baldur's Gate name since the firm lost the Dungeons and Dragons license last year.