Stargate Resistance Dev Files for Chapter 11 Bankruptcy [Bankruptcy]

http://cache.gawkerassets.com/assets...8_sgresist.jpgStargate Resistance couldn't ride to the rescue soon enough to save Cheyenne Mountain Entertainment, which announced yesterday over its forums that it has sought Chapter 11 bankruptcy protection. The company promises full continued support for the game, which released Feb. 10.

In a statement, FireSky, the Cheyenne Mountain in-house studio behind Stargate Resistance, said the bankruptcy filing was itself controversial within the company "and may be rescinded." It notes however that Chapter 11 provides for the reorganization of a company's debt into a manageable plan; it's not liquidation or the dissolution of a company. "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."
The company's filing seems to be tied to the conduct and dismissal of Gary Whiting, Cheyenne Mountain's now former chairman and CEO. Shareholders have filed a complaint against him in Arizona court, according to a statement on the company's site. Cheyenne Mountain alleges Whiting put Cheyenne Mountain on the hook for a payment to a shell company he controls, and that Whiting's dealings with that company have also exposed Cheyenne Mountain to a lawsuit in Utah. They also say that Whiting and his company bought stock from Cheyenne Mountain and its subsidiaries but failed to honor the purchase terms or make payments.
"It is uncertain at this time what the affect of Mr. Whiting's actions and the pending litigation will have on the Company's operations and financial condition," the statement says.

Stargate Worlds & Stargate Resistance Developer Goes Bankrupt [VE3D]


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