German studio Spellbound Entertainment hit with financial trouble
These financial troubles arose when a pending investment round fell through in its final stages, leaving the company unable to pay off many of its expenses.
An auditor has already evaluated the company's situation, and said that since Spellbound has a good reputation with publishers and number of projects well into development, the studio stands a good chance of reorganizing its capital and getting back on its feet.
Regardless of how things pan out, Spellbound confirmed that all 65 of its employees will receive their usual salaries during the initial insolvency proceedings, and its current projects will continue as planned.
Spellbound was initially founded in 1994, and has focused primarily on developing games for the PC, including titles such as Infogrames' Airline Tycoon and Desperados: Wanted Dead or Alive. The studio's founder, Armin Gessert, passed away in 2009.
Currently, Spellbound is developing RavensDale, a steampunk fantasy action game for Xbox 360, PlayStation 3, and PC. The studio has also dabbled in the mobile space with an Android version of its recent Giana Sisters remake.