"After four years developing Sacred 2: Fallen Angel, an extended development delay made it necessary for Ascaron to go into administration," it explained, noting that its development team is currently working on a Sacred 2 PC expansion and Sacred 3.
The company went into administration last week, on April 14, meaning that the studio will temporarily continue operations though it is incapable of repaying its debts.
"Due to the protection offered by German administration rights, Ascaron intends to use this as an opportunity to secure the future of the company," the company noted.
The filing will have no effect on the PlayStation 3 and Xbox 360 versions of Sacred 2, which arrived on PC last year, as Ascaron said that both console editions of the action-RPG are complete and expected to launch by the end of May.
"The server and services of Sacred 2 multiplayer and the Securom game activation are unaffected and will continue as usual," added the company.
"Further updates will be provided in due course."