Interview with Tim Jenson of Cheyenne Mountain Entertainment

I have had the chance to interview Tim Jenson, President and CEO of Cheyenne Mountain Entertainment in another follow-up to the situation at Cheyenne Mountain Entertainment.

Mr. Jenson was kind enough to answer my questions on this subject, explaining the role of Mr. Whiting in the bankruptcy case, and what the future holds for Cheyenne Mountain Entertainment and Stargate Worlds.

Jaime: Was it Gary Whiting who submitted the bankruptcy case? If so, was this part of the reason of his dismissal from Cheyenne Mountain Entertainment?

Mr. Jenson: Yes, Mr. Whiting filed the bankruptcy.  I don’t know why he did this and filing bankruptcy has not helped the company.  Some have speculated that he filed bankruptcy to avoid a negative ruling in the Maricopa County Superior court on pending litigation related to his alleged wrongdoing.  You can get a better understanding of these allegations by going to the court docket http://www.superiorcourt.maricopa.gov/docket/CivilCourtCases/caseSearchResults.asp?lastName=whiting+&FirstName=gary&bName=   .

On your second question, it is not clear that Mr. Whiting has been dismissed from Cheyenne Mountain Entertainment, Inc. (“CME”).  Some shareholders have filed a complaint against Mr. Whiting requesting his removal and CME took action to foreclose on collateral securing loans that Mr. Whiting and his affiliates owed to CME and voted to remove Mr. Whiting and appoint an independent board, but Mr. Whiting is disputing this and it is unclear who is in charge of CME at this point.  The state court and the bankruptcy court have indicated that they will be assigning a receiver or trustee to oversee CME and its subsidiaries and this will help sort out who is in control of CME.

What is the current status of Cheyenne Mountain Entertainment's bankruptcy case? Is CME planning to pursue bankruptcy still?

As I mentioned previously, Mr. Whiting filed the bankruptcy – no one else at the company was aware that this was being done.  Other officers of CME have wanted the bankruptcy dismissed but since the courts have not yet determined who is in charge, it remains in bankruptcy.  Once a receiver or trustee in appointed, the bankruptcy may be dismissed, but this is uncertain at this point.

SG Gaming Info quoted you as saying that Mr. Whiting is continuing to present himself as a representative of CME. Is this true, and has he given any reason for doing so?

Mr. Whiting still believes he is in control of CME and he continues to take actions on behalf of the CME without the knowledge of any of the other employees or officers.  Until the courts make a clear ruling on who is in charge or until they appoint a receiver, the governance of the company is in dispute.

There have been rumors that Firesky and Cheyenne Mountain Entertainment have laid off a number of staff. Some generous estimates have gone from 70% to almost all of the staff. Have there been layoffs, and if so, how extensive are they?

Unfortunately, with the filing of the bankruptcy, CME was not able to raise any funding and the sales of the game were negatively impacted.  Without adequate cash flow, CME is unable to meet its financial obligation or pay its employees.  CME is not able to have its employees continue working without pay so many of them were laid off.  CME is currently seeking ways to keep the Stargate Resistance game operating and growing including partnering with other companies in a joint venture or outsourcing type arrangement.

SG Gaming Info also mentioned today that you feel that you will not be "needed very much longer" at CME after fans noticed a change on your LinkedIn status. Where does this place your future status at CME and Firesky?

If the courts assign a receiver, then that person will be responsible for CME’s executive management and I may no longer be needed.  I am willing to stay on and assist Firesky, SGW and CME for as long as I am needed, but do not want to become a burden or redundant to the company.

With the courts appointing a receiver, what will be Cheyenne Mountain Entertainment's status?

With a receiver appointed, it will be clear who is in charge and corporate governance will greatly improve.  The status of CME should improve with a receiver in place.  This is what was requested by the Plaintiff’s in the complaint.

Can fans expect CME and Firesky to recover from their current state to produce Stargate Worlds?

I sure hope so, but I don’t have a crystal ball and can’t tell you what might happen in the future.  I would sure like to see CME, Firesky and SGW doing great and would be happy to help in any way to make that happen.

My special thanks to Mr. Jenson (and Mr. Mauss of Knowledge Relay) for taking time out of their schedules to talk with me about the situation. I will continue to post updates as the situation proceeds.