SouthPeak Interactive tighten the screws.
By Tim Colwill on May 10, 2013 at 10:35 am
Sources at Timegate, who filed for bankruptcy last week in the wake of the Aliens: Colonial Marines debacle, are claiming that the company has now laid off all of its staff.
Staff were reportedly sent home early yesterday, as another source claimed that SouthPeak Interactive — a company to whom Timegate owes something like $10 million — have been successful in forcing Timegate to liquidate rather than proceed with bankruptcy.
If Timegate were allowed to go bankrupt, they would be able to essentially wipe away the $10 million debt and others, and reform as another company without any legal repercussions. SouthPeak were reportedly successful in convincing a bankruptcy judge to change the Chapter 11 bankruptcy proceedings into a Chapter 7 liquidation, to allow creditors like SouthPeak to extract whatever money they can out of the company before it collapses.
Timegate have refused to comment.