New aggregator MED will pay seven per cent of its first year gross margin back to Telcogames creditors.
MED is the business launched by former Telcogames director Lewis McDonald, after Telco went into administration. It bought the assets and business of Telcogames, which includes all sales channel and supplier contracts. These include O2, Orange, Red Circle and others.The move attracted much rancour from developers owed money by the stricken aggregator. McDonald told ME: “Obviously the administrator will manage the process in the best interests of the creditors, but we’ve pledged to pay seven per cent of gross margin in the first year back to the creditors. That shows we’re sincere, and it means that suppliers that work with us will directly repay some of their debts.”
McDonald reiterated that the reason for Telco's demise was a combination of late payments from retail channels and unsuccessful diversification into native games publishing.
Read the rest of the interview here.
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