TimeGate Studios, the developers behind the Section 8 series and co-developers on the controversial Aliens: Colonial Marines, has filed for bankruptcy protection. The studio filed a petition for Chapter 11 at the Texas Southern Bankruptcy Court on Wednesday. According to Polygon, court documents reveal that TimeGate currently owes money to around 50 creditors, and are around $10 million to $50 million in debt.
As to who their creditors are, the documents list prominent companies such as developer Epic Games, online service Agora Games, and film production company DJ2 Entertainment. TimeGate even owes a local pizzeria $34.80 which they have yet to pay off. One of their biggest creditors, however, is SouthPeak Interactive who published the first Section 8 game. They are owed an “unknown” amount, but it’s likely a lot.
TimeGate has been in a bitter legal battle with Southpeak and just recently lost an appeal against them. They have lost the rights to the Section 8 franchise and potentially owe SouthPeak around $7.35 million in damages. Their most recent debacle came in the form of Aliens: Colonial Marines, which they co-developed with Gearbox Software. The game has been universally panned and there’s even a class-action lawsuit in the works claiming that the studios misrepresented the title.
The latest project from TimeGate is the free-to-play shooter Minimum, although its future is currently unknown due to this recent bankruptcy filing.