Atari bankruptcy recovery plan approved

Jamie Lumsden, ClickOnline.com

, Last Updated: 4:48 PM ET

According to The Wall Street Journal, yesterday courts approved the three-year recovery plan submitted by Atari's U.S. branch to exit bankruptcy. The plan was given approval by Judge James Peck in the U.S. bankruptcy court in Manhattan and garnered unanimous support by Atari's unsecured creditors, who are owed a total of $10.3 million US.

Atari's plan looks to pay back the $3.8 million owed to Alden Global Capital, using what cash remains to make yearly payments to its other creditors over a two year period.

The bankruptcy filing by Atari's US branch was actually an effort to separate themselves from the failing parent company. In order to do this, the U.S. branch ended up selling much of their library of over 200 video game IPs.

Guess we will find out how well it worked in the coming months!


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