German dev Spellbound files for insolvency

German developer Spellbound Entertainment has filed for insolvency after failing to secure enough investment.

Despite the filing, the salaries of 65 employees have been secured during preliminary insolvency proceedings, and business is to proceed as normal.

A new round of investment is set to begin immediately, and preliminary insolvency trustee Ulrich Nehrig claims there is “a very good chance of success” as the developer already has a number of advanced projects underway.

Offenburg-based studio Spellbound was formed in 1994, and has created games such as Desperados, Giana Sisters, Airline Tycoon and Gothic 4: Arcania.