Crytek has officially confirmed its proposed acquisition of the Homefront IP from bankrupt publisher THQ.
Crytek chief executive Cevat Yerli confirmed that work continues on Homefront 2, which CVG understands will be showcased at E3 and likely for next-gen consoles.
It's alleged that the Homefront acquisition cost the Frankfurt based company some $500,000, although this has not been confirmed.
Homefront 2 is being developed at Crytek UK - formerly Free Radical - which is headquartered in Nottingham.
"Since we first reached an agreement to develop Homefront 2, we've been firm believers in the IP and its potential to excite and amaze players," Yerli said in a statement issued to CVG.
"Our cooperation with THQ was always positive and we would like to thank them for all their support over the last two years and express our sympathy to those affected by the recent events at the company."
Crytek's general manager of games, Nick Button-Brown, also claimed that work on Homefront 2 has not been affected by THQ's bankruptcy.
"From day one, the Homefront 2 team has been committed to creating a game that takes the series to new heights and features the level of quality and innovation associated with Crytek," he said.
"Nothing has changed with regards our development of the game, and we look forward to sharing the finished product with players."
According to its original announcement press release, Homefront 2 will "benefit from the very latest CryEngine technology".