Deep Silver, the publishing company behind the Dead Island franchise, severed ties with developer Yager for Dead Island 2. Yager, as you might know, is the same studio behind the likes of Spec Ops: The Line and the upcoming Dreadnought.

In the wake of losing the Dead Island 2 contract, Yager Productions GmbH, a sub-division of the German dev, has filed for insolvency. Essentially, they can’t pay their debts on time.

Speaking with Game Industry, Yager’s MD Timo Ulmann had this to say about the filing.

“As single-purpose company, Yager Productions GmbH was assigned to the development of the Deep Silver title Dead Island 2…

…The insolvency filing is a direct result from the early termination of the project and helps protecting our staff. In the course of the proceedings, we gain time to sort out the best options for reorganizing this entity.”

It seems like Yager set up Yager Productions GmbH in order to insulate the greater company from any issues with Dead Island 2. Smart move, it seems, as this insolvency shouldn’t hurt Yager as an entity.

At least this should help protect the studio’s staff.