Game Over for TimeGate

A Texas bankruptcy has pulled the plug on TimeGate Studios Inc.’s short-lived restructuring bid, and the videogame developer has shut its doors and will liquidate its remaining assets. Judge Jeff Bohm of the U.S. Bankruptcy Court in Houston converted the bankruptcy to a Chapter 7 case from a Chapter 11 after a videogame publisher complained the bankruptcy was a “ruse” designed to let TimeGate insiders off the hook for a $10 million fraud judgment. Gaming website Kotaku reported that TimeGate, the developer behind “Section 8” and “Aliens: Colonial Marines,” has shut its doors and laid off its staff. A receptionist at TimeGate, reached by phone, said she couldn’t comment on the case. The videogame developer, which listed assets of less than $10 million and debt of less than $50 million in its May 1 bankruptcy filing, employed 33 people at its Sugar Land, Texas, headquarters as of last month. The company had sought to stay alive long enough to find a buyer in order to successfully launch its latest shooter game, “Minimum.” That game, TimeGate said, was projected to generate sales of $30 million to $75 million in the next 3 1/2 years. Read the rest at http://blogs.wsj.com/bankruptcy/2013/05/16/game-over-for-timegate/