Ascaron Entertainment (Sacred 2) files for bankruptcy

[Repline]

From Gamespot: Ascaron Entertainment enters administration due to extended development time on Xbox 360, PS3 editions of action RPG; PC expansion, Sacred 3 teased.

Last week, cdv Software Entertainment announced that the Xbox 360 edition of Ascaron Entertainment's Sacred 2: Fallen Angel had gone gold and was expected to ship alongside the PlayStation 3 edition this May. That game's release apparently couldn't come soon enough, however, as Ascaron confirmed today that it has filed for
bankruptcy protection in its native Germany.

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

Ascaron noted that its bankruptcy filing will not impact the release of Sacred 2: Fallen Angel, saying that development on both console editions has now wrapped and reconfirming their May release. Ascaron's Heiko tom Felde also emphasized that the PC edition of Sacred 2--released in November 2008--will see no interruption with its online
multiplayer component or SecuROM game activation software.

Indeed, assuming Ascaron resolves its monetary issues, the game maker said it is already at work on an expansion to the PC game. The developer also confirmed that it has begun development on a full-fledged follow-up, Sacred 3. No other details on either project were revealed.

Hope they recover at least the cost.

[Isengard]

Another one. I'm using opera mini now so can't post the link, but unlike what gamesuck are reporting they are not bankrupt but have filed for bankruptcy protection. Please people stop posting news from gamespot.

[Azimuth]

Gamespot isn't the only site reporting this, genius.

[Repline]

Filing for bankruptcy protection is usually "the beginning" of going bankrupt. There might still be mitigating circumstances; however mostly once a company files for bankruptcy protection it means that the directors are no longer positive about the future prospects of the company.

When you file for protection it only means your creditors are not able to contact you for payment any-longer. And that means you cannot pay them, and once your unable to pay your creditors = bankruptcy.

[Higushi]

Another one. I'm using opera mini now so can't post the link, but unlike what gamesuck are reporting they are not bankrupt but have filed for bankruptcy protection. Please people stop posting news from gamespot.

That game's release apparently couldn't come soon enough, however, as Ascaron confirmed today that it has filed for bankruptcy protection in its native Germany.

lol.

Looks like "gamesuck" doesn't suck as much as you want it to...

[Isengard]

It's more the title thats the problem, the same one that gamesuck used. People tend to make assumptions based solely on that. The title clearly suggests that they filed for bankruptcy, which is not the case.

[dislekcia]

Also, bankruptcy protection is a preventative measure to make sure a company isn't forced into bankruptcy by panicking creditors all trying to get their cash out of the company fast. Companies can and do come out of protection all the time, so it's not a death sentence. It's more like an admission that right now is a tough time in which the company needs understanding and perseverance from creditors in order to pull through. Certain business jurisdictions try to foster that sort of financial responsibility, hence the arbitration: A company filing for protection has to prove that it can pull itself out of whatever hardship it's in, provided it isn't ripped apart by creditors.

[PloPshoP]

A company filing for protection has to prove that it can pull itself out of whatever hardship it's in, provided it isn't ripped apart by creditors.

Exactly, it's not all doom and gloom. If every creditor had to initiate court proceedings to recover its money, the company would be properly bankrupt in no time due to legal costs. Filing for bankruptcy freezes all court processes to avoid the company being drained by a multiplicity of actions.