Spellbound Entertainment AG, the developer behind games such as Arcania: Gothic 4 and Airline Tycoon, has filed for insolvency it has been revealed today.
The announcement came after the company failed to secure funding after an investment round broke down in its final stages. Dr Ulrich Nehrig has been appointed as the preliminary insolvency trustee, and his initial audit has revealed a strong possibility of recapitalization due to the advanced projects already underway at the company and strong feedback from publishers.
The salaries of 65 staff have been secured and business will continue as the developer looks for further investment.