Section 8 dev files for bankruptcy protection
TimeGate Studios files for Chapter 11 in Texas Southern Bankruptcy Court following fraud suit.
Section 8 developer TimeGate Studios, which also contributed to Aliens: Colonial Marines, filed for Chapter 11 bankruptcy protection this week in a Texas bankruptcy court.
Polygon obtained court documents that show the developer has a number of creditors and total liabilities ranging from $10 million to $50 million. Those claiming to be owed money include Epic Games, Agora Games, and DJ2 Entertainment, as well as a local pizza shop asking for $34.80.
Also listed as a top creditor in the bankruptcy filing is Southpeak Interactive, which published the original Section 8. The company is owed an “unknown” amount, according to the documents.
A TimeGate Studios representative could not be reached for comment.
TimeGate Studios’ bankruptcy filing comes a month after the Sugar Land, Texas developer lost a fraud appeal case against Southpeak Interactive, facing $7.35 million in damages and the loss of the Section 8 license as a result.
The company laid off an unspecified number of people in early March.
The studio’s current project is free-to-play stylized PC shooter Minimum. It is unclear how this projected will be affected going forward.
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