Dontnod CEO Oskar Guilbert has told GamesIndustry that the studio has not filed for bankruptcy protection following reports earlier today that this was the case.
"There are some rumours about the bankruptcy of Dontnod. There is no bankruptcy, Dontnod is not in bankruptcy.
"We are in something called in France 'judicial reorganisation' which allows us to re-adapt our production pipeline to the new situation. Because as you know we finished a game called Remember Me for Capcom which was out in June 2013, last year."
"We started new projects and those new projects need some investment and we decided to resize the company in order to match these new needs. That's why we needed judicial reorganisation."
Judicial reorganisation sees the appointment of an administrator to oversee the running of the company focusing on sustainability, settling liabilities and managing labour costs.
Guilbert was not in a position to comment on how staffing levels at the studio will be affected but said that the studio is in "close negotiations with one big partner." He would not reveal who that partner is, however.
He noted that Remember Me is the second most downloaded title on PlayStation Network in Europe thanks to the PlayStation Plus Instant Game Collection. It's unclear how much money Dontnod received as part of the deal with Sony, however, or how much of that money went th publisher Capcom.
Remember Me focused on memory hunter Nilin and was set in a futuristic Paris.