Yeah, I think SK is done now, they did not make a real game in a long time and were cutting staff even before this. Small companies like that just don't have $9 Million to pay-out. Maybe they can sell the right to ED to a developer who will make a sequel to get some money back.
Nintendo owns ED, Crystal Dynamics owns LoK; SK doesn't really have anything.
I don't know about those other games but Nintendo does not own ED, they own or owned the patent for sanity effects. Since other games can do things just like the sanity effects but call them a different name or make them slightly different, I don't know if the patent really means anything. SK also had a exclusive deal with Nintendo back in the day just like Rare did for Donkey Kong Country in the 90's but all that expired too. So Nintendo can not make a game based on ED or the characters in it unless they buy the license from SK, which I would love to see happen, SK made their last game, I don't care if the CEO sells the rights off to get rich himself and screws everyone else, I just want to see another game get made.
What comes around comes around... Nintendo owned part of silicon knights when ED came out, and Denis Dyack wished to become independant and now look at what happens... he pretty much finished the company. On the other hand look at retro studios, they are awesome.. In other words, nintendo demands quality of their product, if they owned part of SK now this would have probably never happened...