Some big news came out of Cheyenne Mountain Entertainment, the developers of the highly anticipated but financially plagued Stargate Worlds (an MMORPG set in the Stargate universe), as FireSky, the publishers for SGW, have officially confirmed that CME has filed for Chapter 11 Bankruptcy. Now, while there have been some fairly big shakeups in the company as a result of the filing, fans may or may not be happy to hear that the bankruptcy filing does not mean that CME will have to give up their development rights on this popular title.

Gabriel_FS, the CME Community Manager, notes that "Chapter 11 simply allows a company to restructure its debt to a manageable plan approved by the courts. It does not absolve a company of debt, and it does not shut it down or otherwise affect its daily operations." In other words, SGW will continue to be developed by CME, but the company has filed for bankruptcy as a way to re-organize their debts and, hopefully, continue to work on SGW.

As well, Gabriel has also noted that "our entire staff is in-house working on upgrades and expansions for Stargate Resistance, and we continue to be motivated and excited by the response we've received from our customers."

You can read the full statement after the jump.

Hi guys, in light of recent events this is the official statement from FireSky:

Cheyenne Mountain’s corporate structure has undergone some dramatic changes in the last few weeks, and that has resulted in various actions such as the filing for Chapter 11. Certain parties believed that was the right thing to do, other parties do not and this is still being evaluated and may be rescinded. Even if the bankruptcy should go through, however, Chapter 11 simply allows a company to restructure its debt to a manageable plan approved by the courts. It does not absolve a company of debt, and it does not shut it down or otherwise affect its daily operations.

This will all be sorted out in the legal and proper manner, and all of us on the development side of things hope it’s done as quickly as possible.

That said, our entire staff is in-house working on upgrades and expansions for Stargate Resistance, and we continue to be motivated and excited by the response we’ve received from our customers.

See you on the battlefield!

FireSky