TimeGate Studios Files for Bankruptcy Protection

Aliens: Colonial Marines co-developer and Section 8 developer TimeGate Studios has filed for Chapter 11 bankruptcy protection in Texas Southern Bankruptcy Court, according to court documents obtained by Polygon.

The filing comes on the heels of news last week that a court sided with SouthPeak Interactive, publisher of the original Section 8, which said that it is owed an "unknown" amount related to that game publishing deal. TimeGate tried to appeal a decision that came out of arbitration related to the 2009 lawsuit. That arbitration led to a $7.35 million judgment against the developer and a loss of the Section 8 license. In April the Court of Appeals reversed a lower court decision that sided with TimeGate related to the Section 8 franchise and the arbitration ruling.

Polygon reports that the petition filed by TimeGate contains a list of "less than 50 creditors" that it owes money to in the $10 – $50 million range. TimeGate mentions Unreal Engine developer Epic Games, online game service Agora Games and transmedia developer DJ2 Entertainment as creditors of note.

TimeGate Studios announced a video game project called Minimum in April. That is likely on hold in the short term, at least..

Source: Polygon


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