Austrian-based publisher JoWooD filed for insolvency (the equivalent of bankruptcy in the United States) late last week, ending a long struggle to stay afloat. The company filed for insolvency with Vienna’s commercial court for a "procedure of capital reorganization." The company announced on the same day that efforts to shore up capital and equity failed. Despite the filing, JoWooD believes that it can conclude "successful discussions" with investors and its creditors "within 90 days."
JoWooD is also pursuing a lawsuit with Koch Media, claiming that the German publisher "underpaid" for 6.4 million shares it held in 2006. JoWooD claims that the shortfall for those shares amounts to $3.04 million plus interest owed. Under Austrian law, Koch Media would be liable for the shortfall, regardless of whose fault the miscalculation was.
The lawsuit will not be resolved any time soon, according to this GameIndustry.biz report.
JoWooD has been struggling financially for years. One of its bigger titles, Arcania: A Gothic Tale, failed to find success in Europe and abroad.