Hey, this might even be a GOOD thing.
Imagine this scenario:
1. CIG defaults on the loan.
2. SC and all it's assets (physical and non-physical) now belong to Coutts & Co.
3. Coutts and Co. seek another publisher to buy the assets from them (they wouldn't want to keep a game IP and assets in their portfolio - would make no sense).
4. Coutts sell SC and all its IP to a large game publisher.
5. Large Game publisher now takes hold of the project with proper project managers (sorry Chris we gotta let you go!)
6. Large Game publisher decides to honor the backers original stretch goals, manages project well and releases a decent Star Citizen that everyone backed for originally.
8. Backers happy.
I support Portsmouth Football Club (yes, I know). We've had some problems with owners. A few years ago our then-owner, an Israeli arms dealer (IIRC) sold us to an oil sheik. It was all given the OK by the FA, with background/credit checks & alll supposedly completed. Said oil sheik wasn't. 2 months or so after he took over he defaulted on the load that he'd made to buy the club and all of a sudden a rather cnfused banker in Hong Kong was the new owner. It was an interesting few years, but as a FC there were actual physical assets and a source of income. It wasn't pretty, though, and included literal last minute deals to stop the club from being permanently wound up while in receivership.
So yeah, hoping for #1 isn't great.
Also, IMO, no publisher would want to touch Star Citizen. For one, only one of the big boys has the cash to push the project to any sort of completion, and they all already have their own scifi IPs. Would they want the trouble of trying to push out and run an over-hyped FPS/MMO with that fanbase? Not if they wanted to retain their sanity.
The only way you'll get a complete game is if CIG are the ones to create it.
My god, the doomsday patrol is really active.
- It's standard practice to set up EVERYTHING as security just so that the Bank has a means to demand payment from liquidated assets just so the loan taker cant just run away
- Banks today would NOT loan money to a company they view as a security risk
- It also means that F42 can now RAISE the loan at need as long as the total value to their security allows it.
- The loan is at 0.25% which is not improbable with todays interest rates AND the ability as a customer to negotiate in todays extremely low interest rates
- The loan will be tax deductable
- If F42 need money to finish the SQ42 game it's MORE expensive to MOVE money from the US to UK than taking a loan
- With that low interest they can easily MAKE money by borrowing money and invest part of it to counter the low interest rate
- And no, the bank owns nothing of CIG, they have security of CIG assets in case of CIG failing to repay said loan
Source: My 20 years experience as an investment, financial and general banker.
It's still not a good look for a fully funded enterprise even if this is the case.
If we hear that all digital assets, staff & etc get moved to F42 then I'd hazard a guess that management are preparing to default and bail with whatever cash is elsewhere.