German developer Spellbound Entertainment has filed for insolvency after failing to secure an investment to keep it fully operational. The good news, if there is any to be had in a story like this, is that the salaries of the company's 65 employees have been secured while the preliminary insolvency proceedings take place, and Spellbound will proceed as normal. A new round of investment is set to begin immediately, and preliminary insolvency trustee Ulrich Nehrig claims that there is "a very good chance of success" because Spellbound has a number of projects underway.
The Offenburg, Germany-based development studio was formed in 1994, and has created several games including Desperados, Giana Sisters, Airline Tycoon and Gothic 4: Arcania.
Spellbound is currently developing a steampunk themed action game called Ravensdale using Havok's Vision Engine game development technology.