Atari Receives Court Approval for Bankruptcy Recovery Plan

Atari’s American branch has received court approval for a three-year recovery plan to come out of bankruptcy, reports The Wall Street Journal.

The movement was approved by Judge James Peck in the Manhattan Bankruptcy Court and unanimously supported by Atari’s unsecured creditors.

Atari owe $3.8 million to bankruptcy lender Alden Global Capital and $10.3 million to Atari’s creditors. Atari have agreed to pay the lender back in full and will pay the creditors in instalments of $560,000 a year for the next two years and $630,000 in the final third year.

Atari’s U.S branch filed for bankruptcy in January of this year in an effort to break away from its parent company. Atari meant to sell their IP library of more than 200 video games, which had been valued at $22.2 million; however there were only 15 preliminary bids and none were deemed acceptable by Atari, according to The Wall Street Journal.

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