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Artifact Files Chapter 11

Craig McGregor Posted:
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Artifact Entertainment has filed for voluntary reorganization under Chapter 11 to restructure their debt.  They have indicated that Horizons: Empire of Istaria will experience no interruption in service and business will resume as usual.

Here is the press release:

July 19, 2004, Mesa, Ariz. - Artifact Entertainment, developers of the award-winning massively multiplayer online role-playing game (MMORPG) Horizons: Empire of Istaria, announced today that to restructure its debt and strengthen its competitive position, the Company has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This action was primarily due to an inability to reach a mutually satisfactory agreement with a key vendor.

The company is also in active discussions with other gaming industry players, with due diligence underway by a seriously interested company that may make an offer to acquire the assets of the company, and retain key staff to maintain operations of its Horizons game. Horizons has a worldwide following and is played by tens-of-thousands of fans in nearly 40 countries spanning territories in Asia, Europe and North America. Players are able to download Horizons for a free seven-day trial and subsequently subscribe to the game for a one-, three-, six or 12-month commitment period.

Artifact Entertainment President and Creative Director, David Bowman, said, "Artifact Entertainment is a wonderfully creative company. We have an excellent game subscriber base through our Horizons property. We have been taking prudent steps to improve cash flow during the past seven months. Unfortunately, we have not yet been able to reach a satisfactory agreement with a key vendor. We strongly reiterate that Horizons fans and their game play will not be affected by the Chapter 11 filing."


Craig McGregor