Bidder emerges for State of Emergency 2

Tenon Recovery, the firm handling the administration of Scottish developer VIS Entertainment, has confirmed that negotiations are underway with a preferred bidder for State of Emergency 2.

The identity of the bidder has not been disclosed, although Scottish industry sources have linked a number of potential suitors to the deal - with the name of US firm Bethesda, in particular, coming up several times in conversation over the past week.

"I received a number of inquiries about SoE2," confirmed Tenon Recovery director Tom Maclennan, "and am now in discussion with a preferred bidder. I would hope to be able to conclude a deal within the next week."

VIS, which was bought out by BAM Entertainment in February 2004 in a $7 million deal, was placed in administration last week. The Dundee studio has officially been shut down, with the loss of 54 jobs, while a further 42 staff at the company's Edinburgh studio have been sent home to await further news.