The strange case of OnLive's restructure has given one major manufacturer a major headache, with HTC confirming that it will have to show a $40 million (£25.5) loss over its investment in the game streaming company.

Taiwanese phone giant HTC was a key investor in OnLive, which also has BT numbered among its partners.

OnLive's future is still unclear, with the last official word suggesting that the company assets have been acquired into a new company.

Cash stream buffering problems?

HTC's filing to the Taiwan stock exchange said: "Due to lack of operating cash and an inability to raise new capital, OnLive had completed asset restructuring over the weekend. HTC estimates that it will need to recognize a $40 million provision for this investment loss."

It's a key blow for HTC, a company that is battling against its own financial woes, with suggestions of a government bail out this month and an admission by its CEO that mistakes have been made.

And there will also be interest in what the company's other backers announce, including British telecoms giant BT, Warner Bros and AT&T.

BT contacted TechRadar about the OnLive situation and gave us the following comment:

"We cannot comment on speculation about the future of OnLive, but we are keeping a close eye on developments. Questions should be directed to the company in question.

"BT customers who are customers of OnLive will continue to be able to access the service. In any event, the 2.6 per cent shareholding in OnLive does not represent a significant investment for BT as a whole.

"We consider it highly likely that we'll have to write off our investment."

This article has been updated to include BT's official comment.

Via PC World