TimeGate Studios Files for Bankruptcy - Owes Everyone Money Including the Pizza Boy

[Shawn Zipay]

TimeGate Studios, the development team behind Section 8 and parts of Aliens: Colonial Marines has filed for Chapter 11 bankruptcy on Wednesday.

The filing lists more than 50 creditors that TimeGate owes money to, with total liabilities ranging from $10 million to $50 million. They owe money to a variety of businesses from $34.80 owed a local pizzeria to companies such as Epic Games, Agora Games, DJ2 Entertainment, Birthplace Management Group, and more.

Perhaps the most substantial amount owed is for Southpeak Interactive, the publisher of Section 8. Southpeak is owed an "unknown" amount of money but it is expected to be the most substantial. Just with Southpeak, TimeGate faces $7.35 million in damages and the loss of the Section 8 license thanks to a fraud suit filed between the two studios. This suit extends back to 2009 when TimeGate and Southpeak sued and counter-sued each other over troubles faced during Section 8's development.

TimeGate had announced a new shooter Minimum, back in April.

(via Polygon)

[papasmurf128]

I liked Section 8 : Prejudice, but I knew the lasting power wasn't there. I really think that the A:CM killed the studio especially with the negative backlash from the finished product.