Report: TimeGate Studios Files For Bankruptcy

by Matt Helgeson on May 02, 2013 at 03:20 PM

According to a new report, the Section 8 studio, which also worked on the ill-fated Aliens: Colonial Marines, has filed for bankruptcy.

The website Polygon has published a story based on Texas bankruptcy court documents that it obtained.

According to Polygon, "The petition filed by TimeGate lists less than 50 creditors owed money by the game developer and total liabilities ranging from $10 million to $50 million. TimeGate's top creditors include companies like Unreal Engine developer Epic Games, online game service Agora Games and transmedia developer DJ2 Entertainment. Creditors listed in court documents also include a local pizzeria, to whom TimeGate owes $34.80, and video game agency Birthplace Management Group, which is owed $20,539.20."

The story also goes on to reveal that TimeGate owes substantial debts to SouthPeak Interactive, in which it had been involved with a lawsuit involving the localization of Section 8.

Recently, TimeGate had done work on Sega's critically panned Aliens: Colonial Marines along with Gearbox Software and was forced to conduct extensive layoffs in March.

We send out our condolences to TimeGate and the people who have lost their jobs. However, this bankruptcy filing will at least preclude the company for being named in the class action lawsuit that has resulted from Aliens: Colonial Marines.

[Source: Polygon]