Mike Z has laid off everyone at Lab Zero Games [Update: New Info from Kotaku with MikeZ Response]

[Mzen]

Kotaku article regarding this mess

Mostly stuff we already knew about, with a couple of VERY important nuggets of new information:

According to former employees who asked to remain anonymous, this left Lab Zero with 11 employees, Zaimont included, but the general feeling in the studio was that the company was over. While several talented developers were left, losing style-defining artists like Kim, Cartwright, and Brian "EU03" Jun left a hole too big to fill, especially as the studio's reputation continued to sink. Work on a new project stalled, and many of the remaining employees apparently felt it was only a matter of time until either Zaimont or their publisher pulled the plug.

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Followed by a statement from MikeZ himself:

"Unfortunately, Lab Zero was forced into layoffs because we were no longer able to meet our payroll obligations," Zaimont told Kotaku via email. "It is not a decision I made lightly. I personally know how hard it can be to find employment in a poorly performing economy, but we have more debt than cash, and the last thing I would ever do is not pay my hard-working colleagues or our partners for their work. We are exploring all funding options in hopes of bringing those team members back, but right now that's the reality."

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So... any insiders willing to corroborate his version? I'm absolutely certain he's just trying to cover his ass and everything about this just screams hypocrisy to me, but it would be interesting to get some confirmation from someone who witnessed how everything went down.