Develop reports that Team Bondi, the Sydney-based development studio behind L.A. Noire, has sold off its intellectual property and other assets. Rumors are currently circulating that the studio has gone bankrupt, but these have not yet been confirmed as the Australian legal system means that the relevant paperwork may take up to 28 days to become public.

An unnamed source close to the matter told Develop that the IP and assets have been sold to Kennedy Miller Mitchell (KMM), another Sydney-based production studio which does some work in games. It's claimed that Team Bondi boss Brendan McNamara offered his team two choices: join KMM or accept a severance package.

The apparent collapse of the developer follows recent controversy over its working conditions and Rockstar's split from the studio. McNamara's attitude is often blamed for the studio's fall from grace, and his proposed move to KMM would apparently reunite him with many staffers who left Team Bondi in protest over his reportedly aggressive behavior.

Parent company Rockstar and Depth Analysis, the team behind the impressive animation tech in L.A. Noire, are unaffected by the studio's troubles. The upcoming PC port of L.A. Noire is in development at Rockstar Leeds and is also unaffected by the sale of Team Bondi's assets, as Rockstar owns the L.A. Noire IP.

This article originally appeared on as Team Bondi's Assets and IP Sold Off