CME Investor Release Paints a Bleak Picture
We've reported on the problems out of Cheyenne Mountain Entertainment (CME) over the last few weeks with the struggle for power between Gary Whiting and other members of CME.
We've reported on the problems out of Cheyenne Mountain Entertainment (CME) over the last few weeks with the struggle for power between Gary Whiting and other members of CME. The filing for Chapter 11 Bankruptcy, which led to the attempted removal of Whiting and the ensuing power struggle has been an ongoing series of events. Things seemed like they might have a chance at looking up for CME when the courts of Maricopa County, Arizona stepped in and assigned Edward Burr of Sierra Consulting Group as Receiver until who is in control can be established and to help maintain the company's day to day and financial activities. However, a posting on the CME website today paints a bleak picture.
The post is addressed to the investors of CME, not all of which the company seems to have contact information for, but it begins by explaining what the Receiver is tasked with for the company, but about half way down the page is where the troubles begin to show as it goes into the current status of CME and CMG's (Cheyenne Mountain Games) status and operations. Noted in bullet points is the fact that CME has less than $10,000 in its known bank accounts, but the company has unpaid and past due debts of up to $2.0 million and possibly more. Furthermore, CME and CMG have been named in 5 complaints with potential liability estimated at $10.1 million. If that wasn't bad enough, remember that payroll issue from a while back where it was being reported that some employees hadn't been paid in over a month? It seems CME still has has over $1.1 million in payroll wages owed dating back to March of 2009 along with back taxes.
Game development has ceased and according to the release there are no employees at CME. Stargate Resistance will continue to operate under a joint venture with Fresh Start Studios, but it looks like Stargate Worlds is pretty much dead in the water for now.
As always we wish those that may have lost their jobs because of this the best. Click here to read the full release.
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