Game Insight's Russian business has been declared bankrupt. A criminal case has been initiated against the management

A new round in the history of Game Insight. The procedure of its bankruptcy in Russia has started. The company still owes partners and former employees 142 million rubles, which it does not have. The management faces criminal prosecution.

Izvestia writes about this in its investigation. According to the publication:

  • The Russian “daughter” of Game Insight was declared bankrupt on October 20;
  • the total amount of the company’s debt is more than 142 million rubles (76.2 million rubles to creditors, another 66.5 million — for salaries and severance payments to 300 employees);
  • at the same time, in 2021, the Russian company earned 1.5 billion rubles, and its net profit for the same period amounted to 100 million rubles;
  • bankruptcy proceedings have been opened for the company (a process whose task is, if possible, to satisfy creditors’ claims);
  • the arbitration manager engaged in bankruptcy proceedings is confident that it will not be possible to satisfy creditors in full (by a maximum of 10%). One of the reasons is the minimum of the company’s remaining property: “Out of several large offices of thousands of square meters, now all the company’s property is concentrated in a warehouse with an area of one hundred“;
  • also, a financial analysis of the situation is being conducted, one of its tasks is to find out whether the bankruptcy was intentional;
  • the arbitration manager believes that the reason for bankruptcy is simple. The Russian “Game Insight” had the only source of income — the Lithuanian Game Insight. The latter stopped transferring money for work from a certain point on;
  • in connection with non—payment of salaries, a criminal case was initiated against the management of Game Insight in October (although it is unclear who exactly, and this is important, since four managers have been replaced by the Russian “daughter” over the past year);
  • nuance: the lawyer of Izvestia believes that the criminal case can be terminated if the non-payment was due to the inability to receive funds from the head office in Lithuania.

Recall that in June it became known that Game Insight had started the liquidation procedure. As a result, up to 600 employees could be laid off. As part of the liquidation, the management refused to pay people money for the last working month, as well as severance payments.

The liquidator failed to force all employees to sign papers according to which the dismissal was registered as committed “by agreement of the parties.” Moreover, in August, 74 lawsuits were filed against Game Insight due to unpaid wages.

In this regard, the liquidation failed and the bankruptcy procedure began.

According to the AppMagic analytical service, Game Insight games continue to earn. From June to October inclusive, their total revenue from micropayments amounted to more than $6.7 million (this is about 404 million rubles at the current exchange rate).

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