JoWood Financial Troubles Continue; Files Suit Against Former Co-Publishing Partner Koch Media

By Xav de Matos, Jan 10, 2011 4:00pm PST Austria-based publisher JoWood Entertainment AG announced it applied for capital reorganization in the Vienna Commercial Court after "all efforts towards restructuring of capitalization concerning outside capital as well as equity capital had to be considered as failed" on January 6.

JoWood recently co-published Spellbound Entertainment's role-playing title Arcania: Gothic 4 with its Toronto-based subsidiary DreamCatcher Interactive.

While its current financial state is dire, the company hopes to continue operating, noting "The management board assumes that negotiations with creditors and possible investors can be positively conducted and finalized within 90 days and thus continuation of the company can be assured."

According to Gamasutra, JoWood filed a lawsuit against its former co-publishing partner Koch Media days before the insolvency. The suit claims that Koch Media overvalued shares in a 2006 capital increase when it issues 6.4 million shares valued at €6.4 million ($8.28M). JoWood now contends that the shares were only valued at €4.04 million ($5.22M) and that Koch owes JoWood the difference, totaling €2.36 million ($3.05M), plus interest.

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