Timegate Studios files for bankruptcy

Timegate Studios, which developed the Kohan series, Section 8 and the unfortunate Aliens: Colonial Marines with Gearbox, has filed for Chapter 11 bankruptcy thanks to the fraud suit filed against it.

According to court documents, Timegate had creditors and total liabilities which ranged from $10 million to $50 million. Claimants include Southpeak Interactive Epic Games, Agora Games, and DJ2 Entertainment - as well as a local pizza shop asking for $34.80.

TimeGate had lost an appeal from Southpeak Interactive for $7.35M, and laid off a number of employees last March.

The studio had been developing a new shooter Minimum. Its status is now in doubt.