Spellbound Entertainment AG announced that the company has filed for insolvency at the Amtsgericht Offenburg, the result of an investment round breaking down in its final stages. Dr. Ulrich Nehrig has been appointed as the preliminary insolvency trustee and has already performed an initial audit of the company's finances. The audit found that the company had well advanced projects that had generated positive feedback from video games publishers indicating that there is a strong possibility of recapitalization.
The salaries of the 65 employees are secured during the preliminary insolvency proceedings and business will continue as normal. According to Dr. Nehrig, immediate investment proceedings will be initiated and his evaluation is that there is a very good chance of success.