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Cariblifecentral Project - Latest victim to Global Recession?

We had been working with Cariblifecentral for their website development project from July to October and off late we came to know that the parent company might file for bankruptcy as they are facing lot of problems due to the current economic crisis that has engulfed the whole world.

Openkick was awarded the project to develop Cariblifecentral Website in Drupal Version 5.7 on June 17th, 2008. The project had a strict deadline of 25th August, 2008.

Client side testing started on 24th August and the deployment process took place on 20th September 2008. Openkick also provide one man-month (and an additional one man-week on request from the client) post-deployment support as per the contracts.

Although the advance payment for the project did came through fine, the client delayed in making the payment before the deployment process. Also even after multiple requests, the client is still to pay for the balance of USD 7360 which was suppose to be paid as soon as the support period ended.

When contacted, the client gave reasons that since Openkick mismanaged the project, the MSA and WO were clearly violated. This was followed by a series of exchanges of emails between Cariblifecentral team and Openkick. Openkick had another phone call with Cariblifecentral team on 28th November, 2008 where Cariblifecentral gave a reason for inability to pay the project fees on time as their banks have squeezed their credit lines and they were in no position to sustain the business.

Cariblifecentral had also mentioned that since they did not have many advertisers to work with and most of the content sources were either shutting their business down or became unavailable, they might have to look at the option of filing for bankruptcy.

Cariblifecentral also went to the extent of mentioning that since Cariblifecentral is filing for Bankruptcy, if Openkick publishes any factual information about the Cariblifecentral project on public medium, Cariblifecentral can go to the extent of filing a suit against the Directors of Openkick and Gloscon if Gloscon or Openkick publishes any factual information about the project on the public platform such as Internet and other media.

Till date, Cariblifecentral has not filed for bankruptcy and Openkick is still waiting for Cariblifecentral to pay up the balance amount.