Cliffhanger Productions has declared bankruptcy and is in the process of liquidation, and players are understandably concerned about the future of their MMO Shadowrun Chronicles. Luckily for customers and Kickstarter backers, we’ve been assured that the game isn’t going anywhere and will continue to receive updates.
The details are a little fuzzy, but we’ve learned that while Cliffhanger Productions Software GmbH has declared bankruptcy, the studio that handles Shadowrun Chronicles (formerly Shadowrun Online) is not. Shadowrun Chronicles is supported by Cliffhanger Productions Games GmbH, an affiliate of the similarly named company and a completely separate legal entity to the former. Furthermore, CPS declaring bankruptcy doesn’t mean that that studio will shut down, just that they are in the process of restructuring and will likely return in one form or another.
It appears that dead horses just can’t go unbeaten. Not to anyone’s surprise, but 38 Studios (amidst layoffs and defaulting on payments) has formally declared bankruptcy and the story of Project Copernicus can finally come to an end, no? Wrong.
According to the Providence Journal, Col. Steve G. O’Donnell of the Rhode Island State Police made a statement that his agency, along with the FBI, US Attorney General, and the Rhode Island Attorney General are in the process of investigating 38 Studios due to activities that have recently come to light, according to the statement. The report doesn’t go into any more details.
O’Donnell was referencing the $75 million loan to 38 Studios as well as another $8 million loan from Bank RI from earlier this year.
So it seems the lid isn’t closed on 38 Studios just yet.
The more this Cheyenne Mountain Entertainment fiasco continues, the more I get the feeling Gary Whiting is going to come back as a Freddy Kreuger-style character who attacks CME employees in their sleep.
This month, Cheyenne Mountain Entertainment, developers of the comatose Stargate Worlds, joined the lawsuit against Gary Whiting, former chairman and big time investor at CME. Gary Whiting is being sued by investors of Cheyenne Mountain Entertainment for alleged wrongdoings against the company. According to the complaints, Whiting failed to honor terms of the agreement, and also failed to make payments to investors based upon said agreements. As Whiting had named ties between MMOGULs, an alleged MMO portal ponzi scheme, and Cheyenne Mountain Entertainment, it was only a matter of time before Cheyenne became involved in the lawsuit.
When Cheyenne ME joined the lawsuit, Gary Whiting was removed from the board, fired, and all ties with him were severed. Unfortunately for Cheyenne, and any unlucky employee who may have bad mouthed Whiting on his way out, the court has ruled against removing Whiting from the board of directors, from the court papers below:
As to Plaintiffs’ request for a TRO, the Court finds insufficient grounds to remove Mr. Whiting and Mr. Safiulla from the board of directors; the Court similarly finds insufficient grounds to appoint independent directors to the board of directors.
That being said, Cheyenne did manage to secure a “receiver” to protect the company’s assets while they continue their forage into Chapter 11 bankruptcy. For the time being, at least, Whiting isn’t going anywhere.
More on Cheyenne Mountain Entertainment as it appears.
Back in December, I referenced to three outcomes of the release of Stargate Resistance, the “replacement” for Stargate Worlds, with the former being released to fund the latter. Those three outcomes were:
This is the “everything went perfectly” outcome: Stargate Resistance launches, does well, and is used to fund Stargate Worlds and pay the employees. Stargate Worlds launches late 2010/Early 2011.
Going further down to earth: Stargate Resistance launches, does well, and Cheyenne takes a heavy look at Stargate Worlds and says “you know, this just isn’t working out.” Aside from a few more shooters, Cheyenne branches the Stargate brand to other forms of games, including real time strategy, console, and other areas of entertainment. Stargate Worlds is put on the back burner and is left there for eternity.
Hitting the pavement without a parachute: Stargate Resistance is either delayed to oblivion or launches to a less than stellar performance. Considering these losses, Cheyenne Mountain Entertainment either closes for good, is acquired by another company, or continues the same path it has been on for the past two years: perpetual delay.
Consider Cheyenne to have just pulled the chute only to find an ACME anvil in its place, as the company today filed for Chapter 11 bankruptcy. Now, Chapter 11, as would be pointed out if I didn’t explain it, does not guarantee that a company is going under, just that they are restructuring in a way that will allow their debt to be paid back in a much more manageable way. This is a pretty standard procedure, and although it doesn’t absolve CME of its debt, it does offer them a chance at a brighter future.
Granted, Chapter 11 bankruptcy is usually akin to rearranging the cement tied to your legs, as you struggle to stay afloat. Although Cheyenne ME will live on for now, there is still no better outlook towards the future.
As for the company itself, I for one am glad to see Cheyenne doing everything it can to distance itself from Gary Whiting. Whiting, a chair-member of Cheyenne, is also the founder of MMOGULS, a controversial and of questionable legality, pyramid scheme that fronts itself as a website to connect MMOs. Currently MMOGULS offers nothing, for a price of $250 up front and $50 a month, with promised commission that hasn’t been paid in several months, according to investors. When investors sued Whiting earlier last year, this is what they were suing over.
Whiting will definitely be a blight on Cheyenne’s sheet, one that appears to be coming to an end, fast.
More on answering the question of “what the hell’s going on at Cheyenne” as it appears. I personally believe Stargate Worlds will have made its way to the defunct category by the end of this year.
MMO Fallout 