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TimeGate Studios files for Chapter 11 bankruptcy

Thursday, 2nd 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.

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3 Comments

  1. Bashtee

    No surprise. After Alien they probably wouldn’t get a single contract.

    #1 1 year ago
  2. Beta

    They’ve seriously declared bankruptcy on $35 worth of pizza?

    #2 1 year ago
  3. The_Red

    @1
    I think it should be Gearbox that’s not getting more contracts after Aliens fiasco, not these guys. Gearbox outsourced the game to them but probably gave them a really small part of the budget Sega had given them.

    #3 1 year ago

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