Fairytale Fights Developer Playlogic in Financial Trouble

The developer and publisher of last year`s Fairytale Fights, Playlogic, is going through some serious financial troubles. Playlogic has requested `surseance van betaling,` which is the “Dutch equivalent of Chapter 11,” according to an SEC filing (via Next Gen). Playlogic filed for this on behalf of both “Playlogic International N.V and her wholly owned subsidiary Playlogic Game Factory B.V.”

Playlogic posted a $20 million annual loss for the year ending December 31, 2009. That was despite a 23% increase in revenues to $11.1 million. It was a major jump in losses, having lost $9.5 million in 2008, though part of it was due to a one-time “impairment charge” of $4.75 million.

The bankruptcy doesn`t come as a complete surprise. Back in May, a filing from Playlogic noted, “There is substantial doubt about our ability to continue as a going concern. If the company does not obtain any necessary financing, we may need to cease operations.”