Gizmondo Europe officially goes into liquidation

February 8th, 2006, 18:19 Posted By: wraggster

Following the High Court's refusal to accept Gizmondo Europe's application for administration last week, it's been announced that the troubled company has officially gone into liquidation.

In a filing with the Securities and Exchange Commission, parent company Tiger Telematics revealed that two liquidation firms have been appointed - David Rubin and Associates and Bigbee and Traynor.

Tiger Telematics expects the firms to make any remaining Gizmondo Europe employees redundant, to wind up operations such as the Gizmondo customer support service and email, and to sell off all assets. This, combined with the previously announced liquidation of Gizmondo's development studios in Sweden and Manchester, is expected to generate around USD 72 million - enough to cover around 80 per cent of the company's liabilities.

Technically speaking, Gizmondo's US arm is still operating - but the future is not looking bright and Tiger Telematics is currently looking at "available options with its Texas games studio subsidiary and its kiosk sales units."

According to the SEC filing, "Strategic options for the Company include the possible sale of the Company or all or a portion of its assets, the sale of Gizmondo intellectual property rights, including patents and game rights which are owned by the Company, and continuing operations in the USA, which would require substantial debt and or equity financing."

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