UPDATE: SG Gaming Info reports that the bankruptcy filing has been rejected, because it was filed by the company’s fired (still disputed) former CEO Gary Whiting, along with a quote on the matter from current chief Tim Jenson. CME was not able to verify this development to GateWorld.
The story of the studio behind the new Stargate PC game Stargate: Resistance and the highly anticipated MMO Stargate Worlds has taken another downturn. Cheyenne Mountain Entertainment filed for Chapter 11 bankruptcy protection on February 12.
Phoenix, Arizona-based CME has faced mounting financial problems in recent years, with the global financial crisis resulting in layoffs and delays to the originally intended publishing schedule. Without a product on the market to earn the company revenue, it has had to rely on investors to get Worlds and Resistance to market.
Stargate: Resistance, a third-person online shooter, went live on February 10.
Chapter 11 does not mean that CME is down for the count, however. Unlike other forms of bankruptcy filing, Chapter 11 allows a business to remain in operation — and in control of its business decisions — under the oversight of the courts.
The filing does not absolve the studio of its debt, and does not mean the doors close or work on the game titles stops.
The studio has released the following statement about the new turn of events:
Cheyenne Mountain’s corporate structure has undergone some dramatic changes in the last few weeks, and that has resulted in various actions such as the filing for Chapter 11. Certain parties believed that was the right thing to do, other parties do not and this is still being evaluated and may be rescinded. Even if the bankruptcy should go through, however, Chapter 11 simply allows a company to restructure its debt to a manageable plan approved by the courts. It does not absolve a company of debt, and it does not shut it down or otherwise affect its daily operations.
This will all be sorted out in the legal and proper manner, and all of us on the development side of things hope it’s done as quickly as possible.
That said, our entire staff is in-house working on upgrades and expansions for Stargate Resistance, and we continue to be motivated and excited by the response we’ve received from our customers.
Stick with GateWorld for further developments. Stargate: Resistance is now available at Direct2Drive.com.
(Thanks to Metonic, Madwelshboy, Andrew, Jayson and Doug for the tip)