Acclaim Close To Bankruptcy

Officials from Acclaim Entertainment have said that a failure to get a new banking facility could lead the company to cease operations or seek bankruptcy protection. Last month the company announced that it had extended a credit agreement with lender GMAC Commercial Finance until 4th August. The company currently has a letter of intent for a $30 million credit facility with a new lender to replace the GMAC facility, but the deal has not yet been completed. "Failure to obtain a new banking facility would materially adversely affect the company's operations and liquidity, and the company could be forced to cease operations or seek bankruptcy protection," a spokesperson said. Source: CNN Money