Colonial Marines co-dev TimeGate files for bankruptcy protection

Colonial Marines codeveloper TimeGate files for bankruptcy protection
Section 8 developer and Aliens: Colonial Marines co-developer TimeGate Studios has filed for bankruptcy protection in the Texas Southern Bankruptcy Court, revealing that it owes its creditors between $10 million and $50 million in debt.

Court documents note that TimeGate seeks protection from creditors while it reexamines its finances, Polygon reports. Currently, the company owes large, unspecified amounts to partners such as Epic Games, Agora Games and DJ2 Entertainment. The petition names nearly 50 creditors in all.

TimeGate recently lost an appeal in its long-running legal battle with publisher SouthPeak Interactive, potentially owing $7.35 million in damages and losing its rights to the Section 8 intellectual property. Aliens: Colonial Marines, which TimeGate developed in partnership with Gearbox Software, is the subject of an ongoing class action lawsuit.

TimeGate's current project, the minimalist free-to-play shooter Minimum, was announced in April.

This article was originally published on Joystiq.