Over this past weekend, venture capital firm Lauder Partners led an unusual restructuring of OnLive game company, which rolled its assets - ranging from technology to trademarks - into a newly-created company; and also slashed the jobs of nearly 100 employees out of its workforce of 200 workers.

In a statement released on Sunday, OnLive revealed that it has undergone a bankruptcy alternative - known as an assignment for the benefit of creditors - whereby all the previous OnLive shareholders, including the company's founder Steve Perlman as well as all its employees, have lost their stakes in the company.

Revealing the details of the unusual restructuring of OnLive - which is backed by AT&T, Time Warner, and smartphone manufacturer HTC -, the game company's spokeswoman said that OnLive's assets have been acquired by the newly-formed company.

Further disclosing that OnLive will retain its earlier name, the spokeswoman revealed that there will be no disruption in the operation of its gaming services during the transition linked to asset acquisition by the newly-created company.

The spokeswoman also said that customers who purchased or rented games from OnLive before its insolvency process will retain their rights, and will be able to access those games after the transition is completed.

Noting that restructuring was deemed the "best course of action" for OnLive by its board of directors, OnLive said in a statement that the asset acquisition will "allow the company's core innovation and ongoing offerings. to survive and continue to evolve."