The Stargate franchise has had a troubled relationship with interactive entertainment, beginning with the canceled Stargate SG-1: The Alliance that led to a two-year legal battle between Perception Studios and JoWood Productions. Now publisher FireSky Entertainment and subsidiary Cheyenne Mountain Games have filed for bankruptcy protection right after the release of the FPS title Stargate Resistance.
“Cheyenne Mountain’s corporate structure has undergone some dramatic changes in the last few weeks, and that has resulted in various actions such as the filing for Chapter 11,” said a release on the company's official forums. “Certain parties believed that was the right thing to do, other parties do not and this is still being evaluated and may be rescinded. Even if the bankruptcy should go through, however, Chapter 11 simply allows a company to restructure its debt to a manageable plan approved by the courts. It does not absolve a company of debt, and it does not shut it down or otherwise affect its daily operations. This will all be sorted out in the legal and proper manner, and all of us on the development side of things hope it’s done as quickly as possible.”
This internal conflict is evidenced by the suit filed against Gary Whiting, Cheyenne's former chairman and CEO. They contend that he bought securities in the company and has failed to live up to his payment obligations. While Cheyenne and FireSky say that support for Stargate Resistance and development of the MMO Stargate Worlds are ongoing, they admit, “It is uncertain at this time what the affect of Mr. Whiting’s actions and the pending litigation will have on the Company’s operations and financial condition.”
