Spellbound Entertainment - Files for Insolvency
Another one bites the dust ... as the whole German internet reports, ArcaniA developer Spellbound had to file for insolvency after a failed investment round. It's quite surprising news because Spellbound was expanding into mobile and online games.
Everyday business continues without changes. Due to the insolvency the wages for the 65 employees are guaranteed by law, at least for a certain time.
The insolvency administrator is optimistic Spellbound can be saved. They have a couple of projects relatively close to release and investors are interested. Search for investors has started immediately.
German insolvency law is strict. If certain requirements are met or certain obligations can no longer be fulfilled, a company must file for bankruptcy. Failing to do so would get the managing director into serious legal trouble. Companies with substance generally have realistic chances to recover.
Spellbound is currently working on the action-RPG Ravensdale.