All valid debts owed to employees, contractors, and vendors of Gamecock Media Group were legally assumed by SouthPeak Games. The trade off is SouthPeak got the entire library of titles Gamecock was publishing. For the price paid, it was actually a great deal.

One of the largest reasons this blog exists is SouthPeak Games has allegedly chronically and delibetarely defaulted on owed debts to Gamecock vendors, employees, and contractors. If you have been in communication with SouthPeak or their representatives, you know how frustrating this experience can be.

Let's debunk some myths propagated by SouthPeak in recent months:

NO SIGNED CONTRACT

This has been SouthPeak's biggest attempt at a loophole to not pay deserving, and valid debts. While a contract is certainly helpful, especially in larger claims, all vendors and contractors work under some sort of agreed upon terms. For instance, for a contractor, an agreement to start work can come in the form of an email, or even for most states, verbally. If you performed valid work and submitted an invoice to Gamecock Media Group for services performed, the liability of that unpaid invoice was assumed by SouthPeak Games.

BANKRUPTCY

There is no known issue of bankruptcy for Gone Off Deep, LLC. SouthPeak acquired both the assets (games, etc) and the liabilities (debts owed). SouthPeak cannot simply "bankrupt the Gamecock corporate shell" to avoid payment of the liabilities.

NO CAPITAL TO PAY DEBTS

Several vendors and contractors have been told by SouthPeak attorneys since December 2008 that the acquisition "didn't go as planned" for SouthPeak, and that they essentially had no capital to pay debts. This is especially hard to swallow given the subsequent press releases boasting of record profit for SouthPeak Games in Q2 and Q3 of 2009. Press releases below:

3rd Quarter 2009 Results

2nd Quarter 2009 Results

ALL VENDORS ARE SETTLING OUT OF COURT

This isn't true. There are several cases currently in litigation, and several have been settled for terms far greater than initially offered (e.g. 80% vs 25%) after initiating litigation.

NO VENDOR IS BEING PAID 100%

Also not true. We have verified accounts of vendors being paid in full.