On May 2, Timegate filed for bankruptcy protection, citing a debt of up to $50 million. The filing revealed that Timegate owed large sums to 50 companies, including Epic Games, Agora Games and DJ2 Entertainment. In April, Timegate lost an appeal against publisher SouthPeak Interactive, potentially losing the Section 8 license and adding $7.35 million to its debt. SouthPeak fought for Timegate's closure in arbitration and won, leading to today's layoffs, the report says.
Timegate let go 25 employees in March, citing a rough transition to next-gen consoles and a publishing deal that fell through. The studio's most recent project is Minimum, a free-to-play shooter for PC that was supposed to launch on Steam Early Access on April 16. Minimum is currently not listed anywhere on Steam.