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Perpetual Entertainment Liquidating Assets

| 26 Nov 2007 20:27
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An SEC report filed by Ragnarok Online developer Gravity Co. states that Perpetual Entertainment is liquidating its assets for distribution to its creditors.

On October 10, according to the filing, Perpetual Entertainment transferred ownership of its "tangible and intangible" assets to Perpetual LLC, a California limited liability company. The filing says Perpetual LLC "shall liquidate the assets, wind down Perpetual, and distribute the net liquidation proceeds to creditors of Perpetual."

Korean-based Gravity, which was notified of the transfer on November 1, had previously invested in Perpetual Entertainment, but said in the report that it "does not anticipate recovering any portion of [Gravity's] original investment of U.S. $9 million made in Perpetual in 2006. The full amount will likely be reflected in its financial statement for 2007 as an impairment loss."

Word of Perpetual's demise first came on October 9, when the company announced that its in-development Gods and Heroes: Rome Rising MMOG would be put on indefinite hold. At the time, it was reported that Perpetual would continue to develop its other project, the Star Trek Online MMOG, under the auspices of new investors and a newly-formed company, which wasn't affected by Perpetual's liquidation.

The full text of Gravity's SEC Form 6-K filing is available here.

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