Ascaron Entertainment, the development studio behind Sacred II - Fallen Angel has filed for bankruptcy protection in Germany, where the developer is based. Entering voluntary administration was a necessity, the company said in a statement, after extended development time on the PlayStation 3 and Xbox 360 version of the game (understandably) went over-budget.

Sacred II - Fallen Angel recently attained gold status on the console platforms, meaning that its development was complete. While it is still scheduled for a release in the United States on the 12th of May (on the Xbox 360, at least) - an Australian release of the console version may be in-line with the PAL release, which is scheduled for June this year.

The release of the console version will provide some economic security for the company, with the administration process allowing Ascaron to hopefully restructure and continue the Sacred series in the future.

A statement released by the reassures owners of the PC version that it entering administration will not affect the online component of Sacred II and the Securom DRM that is packaged with the game:

The server and services of Sacred 2 multiplayer and the Securom game activation are unaffected and will continue as usual.

In relation to the bankruptcy protection filing, the company state that they are also working towards future viability, with an expansion to the PC version of Sacred II in development, alongside a new title in the series, creatively titled Sacred III.

After four years developing Sacred 2: Fallen Angel, an extended development delay made it necessary for Ascaron to go into administration. Even with the high personal commitment of all Ascaron employees it was not possible to make up for this delay. Ascaron has already begun negotiations with several well-known interested parties to discuss a positive takeover.

While it is grim news - there is some hope hidden within the announcement. If Ascaron don't fold, the expansion and next instalment in the series are likely to make fans of the game happy.

If they do fold, however, a DRM removal-tool will hopefully be released for those that have purchased the game on the PC, who will, presumably be left without a way to activate their product should they decide to reinstall in the future.