TimeGate files for Chapter 11 bankruptcy protection

TimeGate Studios, the developers of Section 8 and co-developer of Aliens: Colonial Marines, has filed for a petition for Chapter 11 bankruptcy protection in the Texas Southern Bankruptcy Court and revealing that the company owes $10 million to $50 million in debt. 

According to Polygon, the court documents note that TimeGate is seeking protection from creditors while it reexamines it’s finances. It unknown how much to specific companies but TimeGate does owe money to Epic Games, Agora Games and DJ2 Entertainment. But the petition names about 50 creditors.

In a recent case TimeGate lost in a long-running legal battle against the publisher SnowPeak Interactive that cost the company $7.35 million in damages and lost the rights to the Section 8 intellectual property. Aliens: Colonial Marines, which was developed in partnership with Gearbox Software, is also undergoing a class action lawsuit that alleged that the game was falsely advertised to consumers. 

Source: Polygon

Adam Siddiqui, NoobFeed
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