Horizons and IGN.

[SirBruce]

Their filings say "over 20,000" which seems to be in line with their expenses (see analysis above).  I know previously they were up near 35,000 but had fallen since then.  20,000 sounds about right to me.  Could be 15,000 or 25,000.

Bruce

[SirBruce]

As a follow-up, it should be pointed out that Horizons probably contracted out a fixed-bandwidth contract with Verio, and us such are paying for a much larger pipe than they are using.  This makes sense, if they were expecting 100,000 users instead of 20,000 users.  Their error was not making the contract more flexible if they didn't need all that bandwidth.  Playnet had to deal with a similar issue, but we didn't have time to negotiate a better contract since the previous ISP went out of business.

Bruce

[Numtini]

And they owe IGN $50k... excuse me, what? Who was the business genius who thought that any kind of contract with IGN was worth that kind of money?

My guess would be for banner advertising.

[SirBruce]

Their 16 debtors:

$919,197.52 - NTT/Verio - hosting and bandwidth
$108,272.64 - Object Computing, Inc. - probably licenses on development software or maybe stuff for their website?  http://www.ociweb.com/
$ 87,757.86 - Quest Commercial Business Services
$ 50,871.24 - IGN Entertainment, Inc. - advertising?
$ 30,376.71 - Brown, Raysman, Miller, Felder, & Steiner LLP
$ 27,777.00 - Gigex, Inc. - hosting of downloads?
$ 18,709.64 - CNET Networks - more download hosting?
$ 13,301.10 - Premium Financing Specialists, Inc. - financial services
 $ 6,120.00 - Computer Games/Strategy Plus Magazine - advertising?
 $ 5,000.00 - Atari, Inc.
 $ 4,120.00 - WarCry, Corp. - advertising?
 $ 2,394.50 - Stinson, Morrison, Hecker LLP
 $ 1,891.26 - K.C. Phone Systems, Inc.
 $ 1,813.08 - Paul, Hastings, Janofsky, & Walker
  $  976.20 - Signer Lewak Greenbaum & Goldsteain LLP
  $  154.29 - Benchmark Printing

Bruce

[Mi_Tes]

Their 16 debtors:

$919,197.52 - NTT/Verio - hosting and bandwidth
$108,272.64 - Object Computing, Inc. - probably licenses on development software or maybe stuff for their website?  http://www.ociweb.com/
$ 87,757.86 - Quest Commercial Business Services
$ 50,871.24 - IGN Entertainment, Inc. - advertising?
$ 30,376.71 - Brown, Raysman, Miller, Felder, & Steiner LLP
$ 27,777.00 - Gigex, Inc. - hosting of downloads?
$ 18,709.64 - CNET Networks - more download hosting?
$ 13,301.10 - Premium Financing Specialists, Inc. - financial services
 $ 6,120.00 - Computer Games/Strategy Plus Magazine - advertising?
 $ 5,000.00 - Atari, Inc.
 $ 4,120.00 - WarCry, Corp. - advertising?
 $ 2,394.50 - Stinson, Morrison, Hecker LLP
 $ 1,891.26 - K.C. Phone Systems, Inc.
 $ 1,813.08 - Paul, Hastings, Janofsky, & Walker
  $  976.20 - Signer Lewak Greenbaum & Goldsteain LLP
  $  154.29 - Benchmark Printing

Bruce

Add to that the following creditors:

ADT Security Services
Aqua Chill, INc.
Aramark
Arizona Department of Revenue
Automatic Vending Services
Avaya Financial Services
Christopher Baker
City of Mesa
Crown Bank Leasing
CS&S Leasing, Inc.
Cyberspace Headquarters, LLC
Dennis Beck
Federal Express
GE Capital
Hewlett-Packard Financial
IFC Credit Corporation
Internal Revenue Services
John Selzer
Limelight Networks
McKellips Corporate Square
Noari Capital Corporation
Office Depot, Inc.
Princial Life
Quest Commercial Business Services
R&R Opportunity Fund
Rad Game Tools
Richard Merrill
Rogers & Cowen
SBIC Partners II, L.P.
Securities & Exchange Commission
The Cad Store
Transmetro
United Healthcare
Wells Fargo Financial Leasing
Zurich North America


From what I have heard, the subscription numbers are from 10K-15K now after 35K boxes sold and 80K free downloads.  They are now working on merging all their current servers down to only 2 servers (one RP and one non RP).

Most companies who make it out of Chapter 11 retain most of their management. (At least, that's what all the research and bankruptcy experts told me. Feel free to provide an alternative source of statistics. Perhaps it depends on the circumstances of the filing.)

First Google result found was Post-Chapter 11 Survival for Retailers  
 

Indeed, according to research conducted by the Hillsborough, N.J.-based firm, of 141 retailers with annual sales exceeding $100 million filing for Chapter 11 between 1990 and 2002, only 19 (or 14%) have successfully emerged without a change in control and with virtually the same store count and distribution network in place as when they entered the bankruptcy process. The vast majority of these retailers, 99 (or 70%), were eventually acquired by other companies or had significant assets liquidated. According to the firm, it is still too early to determine whether the remaining 23 (or 16%) will survive.

"While poor leadership and management, inflated egos, and a lack of ability to execute rank among the reasons so many operations eventually fade away after emerging from bankruptcy, neglecting to remedy real operational problems during the Chapter 11 process constitutes an even stronger catalyst for failure," said Welty, whose 25-year career includes positions as national partner for KPMG's Consumer Markets Consulting Practice, president and CEO of the Garr Consulting Group subsidiary of Deloitte & Touche, and senior management positions at retailers Ayres and Gimbel's.

[SirBruce]

From what I have heard, the subscription numbers are from 10K-15K now after 35K boxes sold and 80K free downloads.  They are now working on merging all their current servers down to only 2 servers (one RP and one non RP).

I have a hard to believing the 10-15K figure.  The reason is that I'm pretty sure it's more popular than WW2OL, and they laid off a bunch of people to bring their expenses in line with revenues.  While I don't have a revenue document from the bankruptcy, you can't get by with submitting a document that shows you operating in the red unless you have a lot of cash.  So in order for their expenses to be in line with their revenues, I have to think they are closer to the 20K range.

Most companies who make it out of Chapter 11 retain most of their management. (At least, that's what all the research and bankruptcy experts told me. Feel free to provide an alternative source of statistics. Perhaps it depends on the circumstances of the filing.)

First Google result found was Post-Chapter 11 Survival for Retailers  
 

Indeed, according to research conducted by the Hillsborough, N.J.-based firm, of 141 retailers with annual sales exceeding $100 million filing for Chapter 11 between 1990 and 2002, only 19 (or 14%) have successfully emerged without a change in control and with virtually the same store count and distribution network in place as when they entered the bankruptcy process. The vast majority of these retailers, 99 (or 70%), were eventually acquired by other companies or had significant assets liquidated. According to the firm, it is still too early to determine whether the remaining 23 (or 16%) will survive.

Way too many caveats with that.  It's only about large companies, first of all, and high profile companies that fail often have change of management because they have a lot of cash and assets to work with and can give the one guy a golden parachute while giving having something to offer a new CEO.   Greg Brenneman may come in to save your big name public company, but he won't show up to save your privately-held 25 employee PC game developer.  Secondly, they add the "and with virtually the same..." qualifier, which I'm sure cuts the percentage even further.

As for survival, emerging for Chapter 11 successfully is about 50/50.

Bruce

[HaemishM]

Sure, but that's a Board of Directors decision, firing the CEO.  Now you expect to find someone ELSE, with NO experience with the company and its employees, to come in for FREE, and run a BANKRUPT company that may not survive, and which he has NO financial stake in?

I think the outrage would not be that DB is being paid at all, it's that DB is being paid $10k a MONTH, which is just a really ridiculous salary for someone who has run a company into the bankruptcy in the first place. I'd say that fiscal responsibility is not his strong suit.

[Dark Vengeance]

Sure, but that's a Board of Directors decision, firing the CEO.  Now you expect to find someone ELSE, with NO experience with the company and its employees, to come in for FREE, and run a BANKRUPT company that may not survive, and which he has NO financial stake in?

I think the outrage would not be that DB is being paid at all, it's that DB is being paid $10k a MONTH, which is just a really ridiculous salary for someone who has run a company into the bankruptcy in the first place. I'd say that fiscal responsibility is not his strong suit.

The CFO's salary isn't far behind....DB's salary seems to have been boosted to make sure he was making more than the CFO, which had to be higher than the next closest person, and so on. The CEO and CFO have a tendency to demand the highest salaries in the company...just part of being at the top of the food chain.

I love how they expect to get a Director of Sales and Business Development for ~$60k, particularly in their current situation, where marketing and business development are crucial to their survival....or at least their long-term health.

When you combine that with the number of folks they have making under $25K, it becomes painfully obvious that their restructuring plan is going to demand a lot of loyalty on the part of customers and employees to avoid making the situation even worse.

Time will tell. It's going to be a close one, but they aren't dead yet.

Bring the noise.
Cheers............

[schild]

The correct move would be to hire a recent college grad with a degree in marketing. That kid will work his ass off for whatever wage he gets, trying to make his name something special by turning around that train wreck.

Unfortunately, the game industry is so intertwined with the internet that I don't think there's anyone who plays MMO's that doesn't know to stay the fuck away from Horizons. It doesn't help them, that right next to them on the shelf is Star Wars Galaxies, which removes any chance of having a completely casual gamer buy it on impulse. They'll pick SWG every single time.