Overview
- Court records show the Seoul Bankruptcy Court declared EVR Studio bankrupt on June 5, 2026, a filing that was shared on Reddit and then reported by multiple gaming outlets.
- Those court documents state development on Mudang: Two Hearts has been halted, leaving the project effectively canceled unless a third party acquires the studio’s assets or IP.
- EVR had been listed as both developer and publisher for Mudang, which was revealed at the 2025 Xbox Games Showcase and was confirmed for PS5 when first shown.
- Observers traced signs of trouble to earlier mass layoffs and the studio’s website going offline, and reporting notes the game had been in development since at least 2023 under the working name Project TH.
- The collapse highlights funding pressure on mid-size game studios, threatens jobs for EVR staff and leaves fans uncertain, while bankruptcy proceedings could still produce a sale that would let the title continue under new ownership.