Gamasutra has an article providing some background info of the Paragon Studios closure. Not much that we didn't already know, but its still interesting. Go ahead and tear those stitches right out!
"Things looked like they were going to go well and then things just kind of stopped going well," says Miller. "I'm not exactly sure where the sticking points were, but in the logistics of business there's always some sticking point somewhere [on which] people just aren't willing to budge and I think that's where we ended up. There were one or two points where neither side could budge.
"On the night before we all got the notice of the studio shutting down, Brian, Ross, and Destin were in there still trying to work out that deal. We were a signature away from things going through or not - and we unfortunately fell on the not side."