Section 8 developer and Aliens: Colonial Marines co-developer TimeGate Studios has filed a petition for Chapter 11 bankruptcy protection, according to court documents obtained by Polygon. TimeGate owes money to less than 50 creditors, including Epic Games, online game firm Agora Games, and transmedia company DJ2 Entertainment. Total liabilities to those creditors range from $10 to $50 million.
Among the creditors is publisher Southpeak Interactive. Southpeak and TimeGate have been involved in a legal battle since 2009 over withheld payments and licensing issues. TimeGate Studios now owes $7.35 million in damages to Southpeak after a United States Court of Appeals judge denied TimeGate's appeal two weeks ago. The studio could also lose control of the Section 8 IP.
TimeGate's most recent release, Aliens: Colonial Marines, is also the focus of a class-action lawsuit recently filed against publisher Sega and co-developer Gearbox Software.