Reports are claiming that the development team behind Mortal Kombat franchise are in “active talks with other publishers” over a possible split from current publisher Midway and the formation of a new studio.

Kotaku reports that the 50-strong team were pushed into the move for, amongst other reasons, the withholding of bonus payments at the troubled publisher. It also claimed that there’s an element of frustration within the group at the way Midway is handling its current bankruptcy filings.

A Midway US spokesperson stated: “Midway is not refusing to pay out those bonuses. It's the unsecured creditors committee that is refusing to allow us to pay them. They're the ones holding that up.”

It’s unlikely that if the team were to leave for new ventures that the Mortal Kombat IP would be allowed to travel with them, though the publisher is said to be actively seeker a potential buyer for the classic fighting brand.

Current Midway owner Mark Thomas admitted last month that his company “is haemorrhaging cash at an alarming rate”.

MCV has contacted Midway for confirmation.