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Stargate Worlds Developer In Legal Trouble
The odds of Stargate Worlds ever coming out are slim, and prospects just got a little bit worse. Developer Cheyenne Mountain Entertainment is in hot water for some shady financial dealings surrounding its bankruptcy.
According to court documents, the studio filed for bankruptcy on February 12. The conditions specified that Cheyenne Mountain "could not dispose of any of the assets in the debtor's estate without approval of the bankruptcy court." What did the company do instead? You guessed it. Apparently, it disposed of assets without the approval of the bankruptcy court.
In a confusing dance between subsidiaries, the complaint alleges that the people in charge at CME and Fresh Start Studios arranged a transfer of CME's assets for $100,000 – only a fraction of their actual worth. This kind of transaction should have been approved by the bankruptcy court, but wasn't because – as the plaintiffs claim – "there was a substantial risk that the validity of that agreement would be subject to a legal challenge because of CME's bankruptcy, the lack of approval by the appropriate shareholders, the lack of approval by the boards of CME or CMG, the lack of any authorizing resolution, and the lack of any signature by the president of CME or CMG."
There's a lot of legal mumbo-jumbo going on there, but it doesn't sound good for Stargate Worlds or Cheyenne Mountain.
[via courthousenews]
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