French video game publisher Nacon has filed for insolvency and is requesting the opening of judicial reorganisation proceedings in France, the company announced on Feb. 25.
The publisher and peripherals manufacturer said that it applied to the Commercial Court of Lille Métropole to initiate the proceedings after determining it could no longer meet its liabilities with its available assets due to unforeseen circumstances with the majority shareholder.
Filing for insolvency in France does not equal bankruptcy or insolvency in the U.S. or U.K., and is done precisely to avoid going into the red via restructuring of debts and obligations. The goal of the judicial reorganization request is to evaluate solutions that keep the business operating under the best possible conditions while protecting employees, preserving jobs, and renegotiating debt with creditors under court supervision. The company also said the process is intended to develop a continuation plan for the company.
One of the benefits of the judicial reorganization is that the outstanding debts and liabilities are frozen for a period of up to 18 months, which could end up being just the saving grace the French publisher needs.
According to Nacon, the biggest issue is that Bigben Interactive, its majority shareholder, was unable to make repayments on its loans. Nacon’s shares will also remain suspended from trading on Euronext Paris until the hearing that’s expected to be held in March.
On the publishing side, it’s business as usual for Nacon. The company announced Nacon Connect on March 4, which will showcase upcoming games from its studios for Xbox Series X|S, PlayStation 5, and PC.
Representatives of the company also added that one of their goals is to bring as many of their games as they can to Nintendo Switch 2. Some of Nacon’s latest and upcoming games are Hell is Us, Terminator: Survivors, GreedFall 2: The Dying World, and Styx: Blades of Greed.
As of now, Nacon hasn’t announced any layoffs or internal restructuring, although that’s one of the steps that, unfortunately, can follow these processes.
