Report - Hydrophobia developer Dark Energy Digital going into administration

Hydrophobia developer Dark Energy Digital is heading to administration, according to a report on GI.biz.

A source has told the site employees were informed last week the company had called in administrators and the closure process should begin within the next ten days. Redundancy notices have reportedly already been issued to some staffers and some are concerned "about outstanding payments."

These outstanding payments which have some employees concerned where brought to light by a representative of eighteen employees who claim they haven't been paid for three months.

"I believe that if this information is publicly known then it will help all those that are owed money to make a timely claim with the administrator before it can be fast tracked using a prepack administration," the anonymous representative told Eurogamer.

"We believe Dark Energy Digital will close down [with] the failure of Hydrophobia probably the key to the financial troubles of the company. I believe the company has considerable debt and investors were put off by this debt."

The firm's Hydro Engine as well as its World Championship Snooker IP, the Hydrophobia IP, and another Pool title in development could also be sold to administrators.

Originally known as Blade Interactive when work first started on Hydrophobia, the firm went under during 2008. Later, owners Peter and Deborah Jones came back onto the scene with new company known now as Dark Energy Digital.

Hydrophobia, in development for three years and released digitally, was originally planned as a full retail game and as a trilogy. Poor review scores and sales may have contributed to the team ditching the plan.

After release, the team updated and re-released it with the subtitle Pure on 360 before releasing it on PC and PS3 under the title Hydrophobia Prophecy. All versions of the game failed to meet expectations.

Dark Energy Digital has yet to comment on the report.