"In connection with [the bankruptcy filing] we read with surprise that allegedly one of the contributions due to Playlogic is a sum of 1.7 million euros owed to them by Koch Media and that the company has filed a court case against Koch Media," Koch CEO Klemens Kundratitz told MCV.

Despite what has been circulating around the Internet this week, Kundratitz claimed that no legal action has been filed against Koch by Playlogic and that Koch has to debt to the developer. He stated, "We therefore see the need to set the record straight: Koch Media did enter into a Pan-European Distribution Agreement with Playlogic Entertainment Inc in June 2009 for several of their titles but we refute that we have any debts that are properly due. In contradiction to the recent news articles Playlogic has not filed any formal legal action against us."

"In summary, Playlogic's apparent statements concerning Koch Media are completely unfounded," he concluded. Regardless, Playlogic still finds itself in a bad position after losing $20 million in 2009, and the bankruptcy filing could possibly lead to the company's demise.