Red Mile sinking: Sin City, Heroes Over Europe release in question

With cash short and options shorter, publisher Red Mile is in danger of going out of business, leaving both the video game adaptation of Sin City and Heroes of Europe to tread water. Red Mile inked a co-publishing deal with Atari in mid-2008 for Heroes Over Europe, something it expected to net the struggling company "minimum guaranteed payments" and back-end royalties to help keep it afloat. However, the checks stopped arriving on February 11 as Atari pulled its hand out of Red Mile's wallet, ending its publishing agreement for reasons unknown.

Without any income, and means to pay Heroes Over Europe developer Transmission Games, it's not surprising that the devs walked away as well when Red Mile failed to pay the studio some $281,000.

Red Mile is currently considering going after Atari for "compensatory damages," but time is running short and it's likely the company could simply run out of cash before any settlement is reached. The publisher has around $341,000 left in its coffers, which it estimates will run dry at the end of March. The company predicts that it needs an additional $10,000,000 to keep its doors open another 2-3 years, leaving the eventual release of Heroes Over Europe and Sin City in question. However, given that Red Mile has continually posted losses totaling more than $35 million since it was formed in 2004, we doubt many banks will be opening up their vaults for the company any time soon.