TimeGate Studios faces bankruptcy
May 3, 2013 // 3:14 p.m.
TimeGate Studios, one of the developers behind the already infamous Aliens: Colonial Marines and Section 8 is facing bankruptcy.
According to court documents obtained by Polygon, the Texas-based studio has filed for Chapter 11 bankruptcy protection. The document outlines that TimeGate owes money to almost 50 entities with liabilities between $10m and $50m.
The developer's creditors include Epic Games for the license of the Unreal Engine, transmedia developer DJ2 Entertainment, online game service Agora Games and agency Birthplace Management Group. The court documents even list the $34.80 that the studio owes to its local pizzeria.
Publisher of Section 8, Southpeak Interactive, is also listed in the creditors and is suspected to be the owed the most out of the lot. TimeGate is already facing $7.3m in damages as well as the loss of the Section 8 license due to a fraud lawsuit between itself and the publisher that has been rumbling on since 2009.
TimeGate Studios announced its next project, Minimum, in April. The game will be a minimalist PC shooter with early access to the title available through Steam.
Aliens: Colonial Marines, the title that TimeGate most recently worked on, is also the subject of a class action lawsuit that was filed at the end of April. Although working on the development with Gearbox, TimeGate Studios has escaped being involved in this one with Sega and Gearbox Software being lodged as the defendants.
The class action lawsuit claims that the game was falsely advertised thanks to its misleading trade show demonstrations. It is seeking damages for anyone who bought the game on a pre-order.