Cheyenne files for Chapter 11 bankruptcy, severs ties with Gary Whiting

Anyone who has been keeping an eye on the situation surrounding Stargate Worlds, Cheyenne Mountain Entertainment and related publishing company FireSky, knows that there's been trouble brewing for some time. We've seen struggles to get funding, employees going unpaid, lawsuits for unpaid bills, and some of the studio's main names leaving the building. Still, they just released the FPS based on the work they'd been doing for Stargate Worlds, called Stargate: Resistance. The hope was that S:R would give Cheyenne Mountain Entertainment a much needed cash infusion.

Now, news has come to light that not only has Cheyenne Mountain Entertainment filed for Chapter 11 Bankruptcy protection, but they've also severed all ties with Gary Whiting -- former Chairman and CEO of CME. Add to that, the shareholders and Cheyenne Mountain have joined forces against Whiting in civil case (CV2010-003106) filed in Maricopa County, naming many other ventures including the curious "interactive social network," MMOGuls Inc. as co-defendants, in a civil complaint "alleging various wrong doing against the Company."

A statement detailing the company's current status was posted today to the Stargate Worlds forums. We've included it behind the break for those interested. In the meantime, let's hope that the change in leadership, combined with a reorganization under Chapter 11, and the release of Stargate: Resistance proves to be the boon that Cheyenne Mountain needs to get back on track -- and into the black.

Taken from the post by Gabriel_FS:

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parties believed that was the right thing to do, other parties do not and this is still being evaluated and may be rescinded.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.

See you on the battlefield!