The developer behind FPS Section 8 and several expansions for F.E.A.R. has filled for Chapter 11 bankruptcy.
According to court documents cited by Polygon, the studio is filing for protections against "less than 50" creditors who are owed liabilities ranging from $10 to $50 million.
These creditors include Unreal Engine maker Epic Games, Agora Games, DJ2 Entertainment, video game agency Birthplace Management Corp, and a local pizzeria owed $38.50.
SouthPeak is listed as one of the chief creditors.
TimeGate, which was also involved in the development of Aliens: Colonial Marines, and recently lost an appeal on its lawsuit against SouthPeak that put in on the hook for over $7 million in damages.
The studio had already announced about 25 layoffs in March.
TimeGate was most recently working on a multiplayer shooter called Minimum, but had admitted the damages owed SoutPeak could affect its ability to release the game.