Cheyenne files for Chapter 11 bankruptcy, severs ties with Gary Whiting

Anyone who has been keeping an eye on the situation surrounding Stargate Worlds, Cheyenne Mountain Entertainment and related publishing company FireSky, knows that there's been trouble brewing for some time. We've seen struggles to get funding, employees going unpaid, lawsuits for unpaid bills, and some of the studio's main names leaving the building. Still, they just released the FPS based on the work they'd been doing for Stargate Worlds, called Stargate: Resistance. The hope was that S:R would give Cheyenne Mountain Entertainment a much needed cash infusion.

Now, news has come to light that not only has Cheyenne Mountain Entertainment filed for Chapter 11 Bankruptcy protection, but they've also severed all ties with Gary Whiting -- former Chairman and CEO of CME. Add to that, the shareholders and Cheyenne Mountain have joined forces against Whiting in civil case (CV2010-003106) filed in Maricopa County, naming many other ventures including the curious "interactive social network," MMOGuls Inc. as co-defendants, in a civil complaint "alleging various wrong doing against the Company."

A statement detailing the company's current status was posted today to the Stargate Worlds forums. We've included it behind the break for those interested. In the meantime, let's hope that the change in leadership, combined with a reorganization under Chapter 11, and the release of Stargate: Resistance proves to be the boon that Cheyenne Mountain needs to get back on track -- and into the black.

Continue reading Cheyenne files for Chapter 11 bankruptcy, severs ties with Gary Whiting

Filed under: Business models, MMO industry, New titles, Stargate Worlds, News items, Legal

Cheyenne files for Chapter 11 bankruptcy, severs ties with Gary Whiting originally appeared on Massively on Fri, 19 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

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