Starbreeze has paid off most of its creditors
Recovery of troubled Payday developer as only debts to Nordea and Smilegate remain
Swedish developer and publisher Starbreeze has taken another step toward recovering from its financial woes as it reveals it has completed payments to the majority of its creditors.
The company faced insolvency just two years ago, and spent a year in reconstruction -- a special recovery period afford to Swedish businesses -- in order to reduce its losses and debts.
Starbreeze emerged from reconstruction in December 2019 with a plan to pay off its creditors, today revealing that most have now received that payment.
The Payday developer has paid off all of its supplier creditors and small supplier creditors, as well part of its debt to financial services group Nordea.
Now all that remains is the rest of the Nordea debt, and those related to the convertible bond it arranged when Digital Bros raised its stake in Starbreeze by buying assets held by Crossfire developer Smilegate.
Over the past two years, Starbreeze has sold of System Shock 3, 10 Crowns and Dhruva Interactive, and laid off a quarter of its staff as part of its recovery efforts.
Starbreeze's last full-year financials saw losses rise to $12 million, but these had reduced to $9.9 million by the end of the next quarter.
Back in October, CEO Michael Nermark resigned for unspecified personal reasons.