Hip Interactive Goes Under
Hip Interactive Corp. (TSX:HP) announced today that further to its press release of July 8, 2005, its discussions with a third party to provide interim relief in respect of the Company's immediate financing needs were not successful and that the Company no longer has sufficient cash available to it to pay its liabilities as they become due. Pursuant to an application by Congress Financial Corporation (Canada) under Section 47(1) of the Bankruptcy and Insolvency Act, the Ontario Superior Court of Justice appointed Ernst & Young Inc. as interim receiver over Hip Interactive Corp. and certain of its subsidiaries.
The Company and its subsidiaries will continue to carry on operations during the receivership period under the oversight of the interim receiver. It is expected that the interim receiver will undertake the orderly liquidation of the Company and its subsidiaries under receivership in the interests of their creditors. At this time, it is not clear the level of recovery that the Company's unsecured creditors will realize; although it is not expected that the Company's shareholders will receive any proceeds of such liquidation. As a result of the appointment of the interim receiver, the directors of Hip Interactive Corp. have resigned.
Hip Interactive (www.hipinteractive.com) is a provider of electronic entertainment products, including PC and video games, movies, video arcade games, and proprietary games branded as Hip Games(TM), and accessories branded as Hip Gear(TM).
Note: Hip Interactive Europe is still in business. Only the company's North American branch is going out of business.
7/12/2005 Aaron Thomas