Kotaku reports on two sources telling them that TimeGate Studios, one of the developers behind Aliens: Colonial Marines and best known for Kohan and Section 8, have laid off the remainder of their staff.
No official comment as of now, but TimeGate previously filed for chapter 11 to protect the company from creditors while attempting to restructure the business, something SouthPeak Interactive objected to - and argued for a chapter 7 liquidation instead. One source told Kotaku SouthPeak had won in arbitration and thus TimeGate is no more.
While, Aliens: Colonial Marines was far from a success story - TimeGate's problem mainly stem from the breakdown of their partnership with SouthPeak Interactive on Section 8. They lost of courtcase with the publisher, thus ending up losing both the rights to Section 8 and being forced to pay extensive damages to SouthPeak.