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Studio Production I.G Cancels Project Due to Nonpayment (Update 2)

IG Port, the parent company of the anime studios Production I.G and Xebec, announced on Monday that Production I.G cancelled a contract for a project due to a default on payment. Production I.G sent a notification of the cancellation to its client.

Production I.G already delivered the first part of its work to the client in the first quarter of the fiscal year ending in May of 2013, but due to the client's payment default, Production I.G asked the client to return the work submitted.

Production I.G had already committed 144,358,000 yen (about US$1.8 million) to the project as of June 30. It is discussing measures to recover the costs, and has uncertainty on how this cancellation will affect profitability in the current fiscal year. However, IG Port will report on its projections for this fiscal year once it finishes looking into the effects from the project's cancellation.

[Via Hachima Kikō]

Update: IG Port had to lower its forecast for the 2010 fiscal year after a cancellation of a television series, money owed on an theatrical animation production, and other reasons.

Update 2: Funimation has confirmed with ANN that its Mass Effect: Paragon Lost film is not affected by this cancellation story in any way and is still slated to be released as scheduled on November 13, 2012.