Bankruptcy looms for social games company Zattikka

Just over a year after social game developer Zattikka floated on the London Stock Exchange, the company's financial situation isn't looking so hot. Zattikka, which owns a variety of social game studios including Spellgun Studios, Hattrick and Sneaky Games, went public last April with a market cap of £22 million ($34.8 million). That has since dropped considerably. Now the company has admitted that it has failed to pay back a loan note interest of £275,000 ($421,575) to its Hattrick subsidiary, and has now been told that it must pay the loan back by August 2. If this expiry date goes by without payment, Zattikka will then have two business days to pay back the entire Hattrick loan of 6.4 million euros ($8.4 million). In the meantime, Zattikka is in negotiations to extinguish a "substantial proportion" of what it owes, although a consensus outcome is yet to be decided upon.