cdv names Southpeak as reason for insolvency
German publisher releases information citing non-payment of lawsuit
cdv Software Entertainment AG has released a statement citing the non-payment of funds awarded it in a lawsuit by Southpeak Interactive as the reason why it has been forced to file for preliminary insolvency.
The company, now being run by a court-appointed administrator, is "proactively working on solutions to restructure the company," while it has also entered into discussions with possible investors or purchasers.
"This action was taken following the non-payment of a settlement arising from a recent successful lawsuit against Southpeak Interactive," the statement read, adding that legal measures against its former publishing partner were ongoing.
The move, initially reported by GamesIndustry.biz yesterday also confirms the position that the company is continuing to run as normal for the time being, while the US and UK subsidiaries are unaffected.
Southpeak Interactive has failed to respond to requests for comment.