Starbreeze applies for second extension on reconstruction period

Starbreeze has requested that it be allowed an extra three months in addition to its current reconstruction period.

Reconstruction is a rescue procedure open to Swedish companies that are facing insolvency -- something Starbreeze has been dealing with since December.

Initially, it was granted until March 3, 2019 to prevent the collapse of its business but in February it requested an extension until the beginning of June.

Now the company has asked the Stockholm District Court for a further extension, which would take the reconstruction period up to September 3, 2019. According to an official statement, the administrator handling Starbreeze's case supports this request.

The publisher has previously said it will use this time to "focus on its core business of internal game development and publishing" and has been taking steps to downsize as part of this. Earlier this month, it sold Indian art production firm Dhruva Interactive to Rockstar Games for $7.9 million.

Starbreeze's most recent quarterly financials revealed the publisher is seeking new investment, admitting it does not have enough money to last for another 12 months. The only projects with which it can reverse its fortunes is the upcoming Payday 3 -- which accelerated development back in January -- and a mobile Payday in production with Universal.