Quoted from EternalLife:
I'm 77...In it like you, that's all. I'm just looking at what's there, like you. ARA had a contract to deliver, and they didn't that's a fact. DP is working to get us our games with a new CM.
A great CM delivers 10% under budget and timeline. A good CM delivers 10% over. ARA was so far off the timeline and budget, it's ridiculous - not even close. ARA quoted the game, not DP. Why aren't you going after ARA? We all signed with ARA when DP signed with ARA...
It's unfortunate but it happens, and it will be resolved.
From what I understand CM#1 can be held accountable in court for anything over the original contract DP will have to pay CM#2, and possibly more.
To be fair, it's still a colossal failure on Jaap and Barry's part to have let the situation get to where it is now, or where it was ~6 months ago. They had a bunch of different CMs that they spoke to, and a number submitted quotes. They chose ARA; no-one held a gun against their head and forced them to. There would have been warning signs that things were going wrong, or indications of poor faith. I suspect Rene, given that he was fired, and ARA given their apparently very poor recent financial performance, gave off a lot of bad vibes.
You can't legislate for everything, but you have to have some contingencies in place, and it appears they had none. It shouldn't have taken them ~7+ months since a breakdown in relations with their CM to get another to start a quote process. We don't know whether that quote will be acceptable or not, either, and what a likely timescale is if it's accepted.
Quoted from jeffspinballpalace:
I don't know, this sounds eerily familiar to Heighway's attracting investors. New people injecting new capital - and if the plan is based on borrowing enough to refund existing buyers their money, buy parts, setup factory for manufacturing and early production costs, they will have a lot more people and potential customers pulling for them.
The new operators and owners of HW were in no way 'attracted'. They were screwed (as existing investors), just like almost everyone else who came into contact with Andrew. Instead of letting another Kulek / Jpop happen to the hobby & industry, that likely would have dwarfed both combined, they decided to step in to a state of total failure and commit more money and save everyone. Not just people with money down for machines, or those with machines who had no support, but all the others who were sitting in a hole - distributors, suppliers, contractors & staff. Hopefully they stick to their intent & don't find it too much, and eventually at least make their money back. Until that happens it's more an act of charity. But we'll see.
Re: DP, no-one's going to invest or take equity in them until they have a new contract manufacturer, and if they are to be a long term partner, then ideally it would come from them. If the new CM requires DP to fund the build and parts, rather than them front the cost, I find talk of GoFundMe or something similar rather worrying. It isn't investment, it's passing the cap around for donations. Not only would it seem wrong, but raising a difference-making amount would be extremely unlikely.
If they are in a position to build TBL, and hopefully many more than 300 units, then their business should be attractive enough for private equity or equity crowdfunding (CrowdCube) to be viable. I think large bank loans are very unlikely, at this stage, since they likely have virtually no tangible assets to offer as collateral, and a bunch of liabilities.
Hopefully a deal with the new CM comes off, but they'll have a lot of work to do if they want to ensure that the results are better than with ARA.