Mastertronic agrees deal with creditors to stay in business

Long-running UK games publisher Mastertronic has agreed a deal with its creditors to keep the company in business.

Last week Develop broke the news the company had filed for a company voluntary arrangement as it sought to pay off its debts.

As well as filing for a CVA, the company laid off 40 per cent of its staff and closed its Cambridgeshire HQ, ditching its physical goods business to go digital only.

At noon today all creditors agreed a deal for Mastertronic to pay off its debts. The publisher plans to pay back at least 50p to the pound to all creditors over a period of more than three years, though discussions are ongoing over how payments will be structued.

"It will be at least 50p in the pound for all creditors whether they voted for or against. We have a plan that spans three years four months to do that," Mastertronic CEO Andy Payne told Develop.

"The number could increase if assets which have been discussed are sold in the meantime. Discussions are on going on that front so want to be a tad careful. Ditto shareholders will need to decide what they do, obviously I will take the company forward but others will hopefully see their futures elsewhere and we can put the company in line with a more collective/co-operative model.

"We will be independent, supported by our bank and will 100 per cent focus on delivering for developers and gamers. We are very much open for business and looking forward to making things happen."

You can read Payne’s blog on surviving insolvency here.