Atlus' parent company faces bankruptcy

Index Holdings, the parent company of Japanese game developer Atlus (Shin Megami Tensei series), looks like it's in financial trouble.

According to a CNET Japan report (via Neogaf), the company will be undergoing "civil rehabilitation proceedings" via the Tokyo District Court. After the proceedings, the company will then undergo a corporate restructuring. The total liability of the company is about 24.5 billion yen ($249 million) as of May 31.

Civil rehabilitation is the Japanese equivalent of bankruptcy proceedings, and is usually the step taken before a more serious corporate failure.

Previously, the company was under investigation for questionable business practices, such as fabricating business transactions to maximize the corporate balance sheet. Atlus' previous works include Catherine, the Shin Megami Tensei: Persona titles, and the Etrian Odyssey series. For more information on Atlus' latest title, check out GameSpot's coverage on Shin Megami Tensei IV.