The British developer Mind Candy has managed to stave off financial crisis for the time being by both renegotiating a $8.1 million loan and raising $1.5 million from its investors.
Bloomberg reports that the Moshi Monsters creator would have likely faced bankruptcy had it not been able to extend the terms of its loan with the investment firm TriplePoint Capital. That extension adds two years to the term of the $8.1 million loan. The renegotiation also sees TriplePoint taking a $2 million markdown on the loan’s value.
Meanwhile, the developer was also able to secure $1.5 million in a round of funding with its existing investors, led by Accel Partners and LocalGlobe.
At its peak in 2012, Mind Candy pulled £47 million ($58.7 million) in revenue, but Bloomberg notes that this number fell significantly to just £7 million ($8.7 million) in 2015, prompting the company to close one of its development studios.
In the years since Mind Candy has seen some success with its personalized storybook services Petlandia and is also working on relaunching their well-known Moshi Monsters series.
"This isn’t a situation where hope is our strategy,” said Mind Candy board member and Accel Partners’ Bruce Golden in a statement to Bloomberg. “This company has been through a lot and has a lot to prove ahead of itself, but we think it is on the right track with the right team and the right plan."
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