TimeGate Studios files chapter 11

Owes anywhere between $10 million and $50 million.

TimeGate Studios, contractors on {Aliens: Colonial Marines} and developers on the Kohan games and {Section 8} have filed chapter 11 - to protect the company from creditors. The Texas based developer is currently working on a shooter called Minimum that was recently announced.

Much of TimeGate's problems stem from a courtcase with former publisher SouthPeak Interactive - where TimeGate lost rights to the {Section 8} IP and were told to pay $7.35 million in damages.

Of course, you can bounce back from chapter 11, but it does certainly look dire for TimeGate Studios.

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