Trading in the shares of social internet games developer Zattikka has been suspended
The Zattikka share price has slumped to 2.5p, which values Zattikka at £553,000. Prior to the announcement of its financial difficulties the share price was 29p. Zattikka raised £9.5m net at 100p a share when it joined Aim on 16 April 2012.
Zattikka wants to sell back the Hattrick, Concept Art House and Sneaky Games businesses to their original owners. This would take the form of a cancellation of the loan notes held by the sellers, which substantially reduce the company’s liabilities. There has been no consensus as yet and Zattikka believes that any solution is likely to be a formal arrangement with creditors.
Zattikka has received a demand for interest owed to the Hattrick loan note holders.If the interest of £275,000 is not paid by 2 August then the €6.4m loan becomes repayable in full two days later. Zattikka’s advisers have said that it should not pay the interest because of the danger of the company going into administration in the near future.
It is unclear if there will be anything salvageable for investors in Zattikka itself. The best they can hope for appears to be a new life as a shell.
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