TimeGate Studios files for Chapter 11 bankruptcy

Thursday, 2 May 2013 20:39 GMT By Stephany Nunneley

After laying off a lot of staff members and being hit with a $7.35 million lawsuit by SouthPeak Interactive, TimeGate Studios has filed for Chapter 11 bankruptcy protection.

According to a report on Polygon, the main creditors the firm is filing bankruptcy on are Epic Games, Southpeak Interactive, Agora Games, DJ2 Entertainment, and a local pizza place.

Monetary amounts owed range from $34.80 to $20 million. In all there are less than 50 creditors and total liabilities range from $10 million to $50 million.

Chapter 11 is a chapter of the United States Bankruptcy Code, permitting reorganization under US bankruptcy laws and is available to every business or individual. However, it is used prominently by corporations.