Yager Productions, a sub-division within Spec Ops: The Line studio Yager Developments, has filed for insolvency, following the dissolution of its partnership with Deep Silver for Dead Island 2.

　　In a statement made by managing director Timo Ullmann said the move was a necessary to reorganise the studio and to protect its staff.

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　　"As single-purpose company, Yager Productions GmbH was assigned to the development of the Deep Silver title Dead Island 2," he said. "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."

　　Ulmann's statements indicate that Yager Development as a whole is safe, and the insolvency is specifically targeted at the part of the studio set up to develop Dead Island 2.

　　In early July 2015, Deep Silver announced Yager is no longer working on the Dead Island 2. The statement released on the matter went on to suggest the project was not dead, however.

　　"With Dead Island 2, Deep Silver has always been dedicated to delivering the sequel that Dead Island fans deserve," it said in a statement. "After careful consideration, today we announce the decision to part ways with development partner Yager.

　　"We will continue working towards bringing our vision of Dead Island 2 to life, and we will share further information at a later stage."

　　In the days following, Ulmann explained the split by saying the project "fell out of alignment."

　　"Our team is made of the best creative minds and tech specialists, who all share a common identity. The team worked with enthusiasm to take Dead Island 2 to a new level of quality," he explained. "However, Yager and Deep Silver's respective visions of the project fell out of alignment, which led to the decision that has been made."

　　Yager is currently working on Dreadnought, a flight combat simulator with Grey Box attached as publisher. Ulmann previously said the studio will "focus current efforts on Dreadnought", along with "new projects."