With around 50 employees left, Peak says that it is still a viable company after the loss of its main client, which represented 80 percent of its business.

“It is a very sound and strong company now that it has been downsized,” said Peak’s newly hired chief restructuring officer Mark Calvert, according to Oregon Live. “It’s back to the level it was right before Machine Zone so it’s generating a positive cash flow and is a healthy company able to serve the needs of its customers.”

However, the company did note that it will need to raise funding for the ongoing litigation. Its bankruptcy filing lists assets of $100-500 million and liabilities of $50-100 million.

Peak blames the outage that sparked the disagreement on a software bug in Cisco hardware. In a court filing, it claims Machine Zone committed to pay at least $4 million every month through to October 1, 2017, and said that MZ did not pay for its last three months of data hosting.

Peak also said that it spent $35 million on equipment to deal with Machine Zone’s load, and that the game developer’s new data center uses proprietary Peak technology.

MZ struck back, saying: “Peak’s failures have also forced Machine Zone to devote hundreds of hours of engineering time to remediation and damaged Machine Zone’s strong brand and reputation with gamers.

“In an attempt to mitigate damage to its brand and reputation among its customers, Machine Zone has provided free products normally available for purchase in the game, causing a further loss of revenues.”

Machine Zone deputy general counsel Tracy Tosh Lane said that Peak’s problems are the result of “management incompetency and fraudulent business practices.”

She continued: “After experiencing frequent outages, MZ visited Peak to investigate and found a data center riddled with scattered cardboard boxes and tangled cords.

“Peak’s contract to keep our game up and running was a scam that harmed MZ’s business. That’s why we ran as far as we could from Peak, and that’s why we sued them for damages.”