TimeGate Studios Files for Bankruptcy - NewsWilliam D'Angelo, posted on 02 May 2013 / 2,947 Views
TimeGate Studios, the Aliens: Colonial Marines co-developer, has filed a petition for chapter 11 bankruptcy in Texas. The court documents were obtained by Polygon. Creditors are owed between $10 million and $50 million. Epic Games, DJ2 Entertainment and Agora Games are among the top creditors owed money.
TimeGate had lost a lawsuit against Southpeak and now owes them $7.35 million in damages as well as the Section 8 license. TimeGate had previously sued Southpeak in 2009 claiming it had withheld royalties and failed its responsibilities for localizing Section 8. However, Southpeak countered sued claiming TimeGate had not invested enough money into the game's development. The court ruled in Southpeak's favor.
TimeGate announced a month ago that it is working on a blocky free-to-play third-person shooter called Minimum.