OnLive has tried its best to put a positive spin on the "difficult financial decisions" that led to its "heartbreaking transition" to a new holding company with fewer than half the employees of the old company. But the man in charge of handling the transfer of OnLive's assets says the company was in significantly more trouble than it has publicly let on, facing $30 million to $40 million in debt that threatened to shut it down entirely.
Speaking to the San Jose Mercury News, Insolvency Services Group CEO Joel Weinberg said the streaming game service didn't have enough cash on hand to pay its heavy outstanding debts when his company was brought in last week, and that OnLive was scrambling to find a buyer to prevent a complete shutdown.
"It was a company that was in dire straits," Weinberg said. "It only had days to live in terms of cash flow and the like. Something had to be done immediately or there would have been a hard shutdown, which would have been a disaster."
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