Bankrupt Cheyenne in IP merry-go-round

Bankrupt US developer Cheyenne Mountain Entertainment is selling its intellectual property to a new start-up studio formed by Cheyenne shareholders.

New studio Fresh Start acquired shooter game Stargate: Resistance, apparently for $100,000, and has reserved $200,000 to maintain the online title.

Cheyenne is a studio inundated with money troubles. The firm owes staff some $1.1 million in wages, $3 million in taxes and $2 million to creditors.

The group, which in February declared itself bankrupt, is subject of a $10 million lawsuit.