Vapourware Scam Citizen - Only people with too much money can become StarCitizens! WOULD YOU LIKE TO KNOW MORE?

[ERYFKRAD]

It's not how snowball scheming people or any big businesses operate. There, taking a loan just means more growth. And the growth will pay for the loan.

So it means they are just stupid? Because they have to pay for the loan, if they had money they could just put the money into growth without the loan.

Why invest your money if you could invest someone else's?

 

[Direwolf]

It is pretty obvious what is going on. They are completely out of money, but they are expecting to pull some more with some bullshit Gamescon Demo/3.0. They going to offer some amazing "don't miss" opportunity to their retarded backers they are expecting to sell like hot cakes. If it doesn't - they are done.

 

[thesheeep]

It is pretty obvious what is going on. They are completely out of money, but they are expecting to pull some more with some bullshit Gamescon Demo/3.0. They going to offer some amazing "don't miss" opportunity to their retarded backers they are expecting to sell like hot cakes. If it doesn't - they are done.

And where does that incredible insight come from?
Did you see and analyze their files and accounts?

Or did you just form an opinion based on nothing but thin air, and your wishful thinking has replaced all the needs for hard evidence?
"They took a loan, so they got no money on their own hurrrr!!!" Right, because the world is always that simple.

Not that I don't share that wishful thinking, seeing that massive scam (no matter the initial good intentions) fail would be as fun to me as the promised game would be... in 3-5 years or so.

 

[Country_Gravy]

The problem is taking out a loan that has all assets as collateral. This suggests that with that loan they must be (close to) fully leveraged. Any other loan would be subordinate to this debt, so the only way that another loan would be given is if all assets are worth more than the new loan AND the old loan. If they put all assets as collateral and their assets are worth more than that, then they are just stupid because they are betting the farm on a loan that isn't maxed out for all of their collateral.

They are out of money. Sounds like SQ42 or whatever isn't close to being done, so it's not like "let's finish this up quick and pay this loan." They could very well lose it all.

 

[Perkel]

The problem is taking out a loan that has all assets as collateral.

Again. What does development studio has aside from IP and buildings(assuming they are not rented) which you can mortage ?

 

[thesheeep]

I don't argue that they couldn't lose it all. I don't even argue that they aren't probably out of money. I just don't see any real evidence beyond "this probably means that...".

Edit - Oy! Ninjaed. What Perkel said.
Sure, they could have used only part of their assets as mortgage, but how would you split that up logistically?

Honestly, this is all guesswork at this point. I'd rather wait and see.

 

[Country_Gravy]

The problem is taking out a loan that has all assets as collateral.

Again. What does development studio has aside from IP and buildings(assuming they are not rented) which you can mortage ?

If they were just looking for a line of credit it could be secured by cash or accounts receivable from the parent company. It shows in their last filing the had $1MM profit with funds from their parent company. If they knew money was coming in and the bank believed them based on the parent company's ability to follow through, they wouldn't have to put all of the assets on the line.

 

[Grotesque]

"
We have noticed the speculations created by a posting on the website of UK’s Company House with respect to Coutt’s security for our UK Tax Rebate advance, and we would like to provide you with the following insight to help prevent some of the misinformation we have seen.


Our UK companies are entitled to a Government Game tax credit rebate which we earn every month on the Squadron 42 development. These rebates are payable by the UK Government in the fall of the next following year when we file our tax returns. Foundry 42 and its parent company Cloud Imperium Games UK Ltd. have elected to partner with Coutts, a highly regarded, very selective, and specialized UK banking institution, to obtain a regular advance against this rebate, which will allow us to avoid converting unnecessarily other currencies into GBP. We obviously incur a significant part of our expenditures in GBP while our collections are mostly in USD and EUR. Given today's low interest rates versus the ongoing and uncertain currency fluctuations, this is simply a smart money management move, which we implemented upon recommendation of our financial advisors.


The collateral granted in connection with this discounting loan is absolutely standard and pertains to our UK operation only, which develops Squadron 42. As a careful review of the security will show and contrary to some irresponsible and misleading reports, the collateral specifically excludes “Star Citizen.” The UK Government rebate entitlement, which is audited and certified by our outside auditors on a quarterly basis, is the prime collateral. Per standard procedure in banking, our UK companies of course stand behind the loan and guarantee repayment which, however, given the reliability of the discounted asset (a UK Government payment) is a formality and nothing else. This security does not affect our UK companies’ ownership and control of their assets. Obviously, the UK Government will not default on its rebate obligations which will be used for repayment, and even then the UK companies have ample assets to repay the loan, even in such an eventuality which is of course unthinkable.


This should clarify the matter. Thank you.
"

 

[Direwolf]

Question remains why they need such a small loan now (tax rebate is estimate below $5 million) and why they had to give the bank a floating charge and negative pledge. It’s not currency exchange rate, that is the biggest bullshit i ever heard because neither CIG nor the Bank knows how the pound will develop and it might even cost CIG more if the pound recovers.

Floating Charge means that from now on everything F42 UK does is covered as collateral even if it does not exist yet. They create a new ship, it’s automatically part of the collateral. Which extends to Star Citizen. The exclusion of Star Citizen is in name only (the IP).

Negative Pledge means that F42UK and parent company can not get any other loans. If for example CIG US would try to get a loan in the US and send money to CIG UK they would be in breach of contract and default on the loan.

This is typically only done for bailout loans. Never for a simple advance on tax were you typically only put up the tax credit as security and maybe a savings account.

The Bank obviously thought that there is a good chance CIG will not make it to the end of the fiscal year to get the tax rebate and therefor asked them to put up everything. This is a private Bank that knows when to make profit and it is pretty obvious that they have attached a very high interest rate on this and hope CIG will default

 

[Humanity has risen!]

In the end I don't care about the game at all, I just want to see the house of cards come down, and the star shitizens gradually denying it until it is undeniable and see the remarkable shit show that will ensue.

This project was the nadir of everything I despise about current gaming culture.

 

[Drax]

The homos?

 

[Country_Gravy]

The homos?

sapiens. Only Neanderthals lat 20 years of scamming.

 

[Grotesque]

Derek Smart promised me that the shit will hit the fan several times now!
When is this finally going to happen? I've lost my patience...

Now I am beginning to think I am as retarded as the most Star Citizen zealot for trusting his rhetoric.

 

[Xor]

Derek Smart promised me that the shit will hit the fan several times now!
When is this finally going to happen? I've lost my patience...

Now I am beginning to think I am as retarded as the most Star Citizen zealot for trusting his rhetoric.

Yes, people watching the drama unfold from the sidelines are the same as people who have invested tens of thousands of dollars on virtual ships. What biting commentary. Also, unlike Chris Roberts, Smart hasn't actually promised a date for Star Citizen's downfall.

 

[Grotesque]

 

[AN4RCHID]

That's a nice looking surface. I just wonder if they'll match Elite: Dangerous in terms of believable geological formations... or it will be No Man's Sky style, one terrain type copy pasted across the whole planet with generic points of interest at regular intervals.

 

[Grotesque]

That's a nice looking surface. I just wonder if they'll match Elite: Dangerous in terms of believable geological formations... or it will be No Man's Sky style, one terrain type copy pasted across the whole planet with generic points of interest at regular intervals.

Spoiler

 

[Country_Gravy]

What's the Codex over/under on how long this lasts until crash and burn?
February 2018?

 

[Grotesque]

What's the Codex over/under on how long this lasts until crash and burn?
February 2018?

Here's the answer:
https://docs.google.com/spreadsheet...rDW3OaLO4zgBA1RSYoQOQoNSI/edit#gid=1694467207



In nine days the number of backers increased by nearly 40 000 and the funds by nearly $1,350,000


Estimated totaled pleged by 2018-01-01 (ALT1)
$157,809,322

 

[Varvarg]

That's a nice looking surface. I just wonder if they'll match Elite: Dangerous in terms of believable geological formations... or it will be No Man's Sky style, one terrain type copy pasted across the whole planet with generic points of interest at regular intervals.

That music though. Made my ears bleed. Was that Bjork

Are they planning on actually have a use for these extremely detailed planets, or is it just for scamming retrards of their money

 

[Grotesque]

Are they planning on actually have a use for these extremely detailed planets, or is it just for scamming retrards of their money

?

Shut the fuck up! maybe Chris Roberts will hear you and the game will suffer other feature creeps to the delight of Derek Smart.

 

[Thane Solus]

lmao! Gays! Gays! We made another prototype! buy moar ships!!!!

!

 

[Fedora Master]

Exactly what this game about space and flying space ships in space needs: Planets.

 

[AN4RCHID]

Well... yeah. It's space not an empty void dimension.

The seamless planetary landings is something I've been dreaming of in a game for basically forever. I know there are some indie games that do it but they either look like puke, or aren't real games like Space Engine.

 

[Thane Solus]

Well... yeah. It's space not an empty void dimension.

The seamless planetary landings is something I've been dreaming of in a game for basically forever. I know there are some indie games that do it but they either look like puke, or aren't real games like Space Engine.

A decent number of games did it well, see Elite, Empyrion (so and so) Star Wraith and so on, the problem is what purposes the planet walking, roaming serves at, beside another trade port... Building stuff on the planet, extracting sources, or having some kinda campy Firefly missions, or even wars and factions, well thats too complex... for todays designers...OR:

You can do a prototype that is not even embed in your project, release a mediocre trailer and ask for more money for blow.