Interplay Lacks Funds For Rest of Quarter
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LOS ANGELES, June 25 (Reuters) - Troubled video game publisher Interplay Entertainment Corp. (OTC BB:IPLYE.OB - News) lacks the funds to cover expenses through the current quarter, it said in a quarterly report to securities regulators on Friday.
"The company anticipates its current cash reserves, plus its expected generation of cash from existing operations, will not be sufficient to fund its anticipated expenditures through the second quarter of fiscal 2004," Interplay said in the filing with the U.S. Securities and Exchange Commission.
"Consequently, the company expects that it will need to substantially reduce its working capital needs and/or raise additional capital," Interplay said. "However, no assurance can be given that alternative sources of funding could be obtained on acceptable terms, or at all."
Earlier this month, California labor officials shut down Interplay's headquarters when it learned the company had failed to carry workers' compensation insurance for 79 employees. It has lost its lease on those offices for failing to pay rent.
Interplay's French parent, Titus Interactive, (TITP.LN) was placed under judicial administration earlier this month as the company and an administrator jointly seek to sell its assets.
In the report, Interplay also said it was unable to meet its May 15, May 31 and June 15 payroll obligations.
Shares in Interplay closed unchanged at 4 cents on the over-the-counter bulletin board.
