Close
Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

Atari gets court approval for plan to exit bankruptcy

Atari gets court approval for plan to exit bankruptcy

Thu 05 Dec 2013 7:45pm GMT / 2:45pm EST / 11:45am PST
Financial

Creditors unanimously approve proposal that will see them paid back a fraction of money owed over three years

Atari

Atari group is a global creator, producer and publisher of interactive entertainment for interactive...

atari.com

Less than a year after entering Chapter 11 bankruptcy, Atari has charted a course back out. The Wall Street Journal is reporting that a US Bankruptcy Court judge has given court approval to the company's plan to emerge from bankruptcy.

Under the terms of the plan, bankruptcy lender Alden Global Capital will receive every penny of the $3.8 million it is owed, while Atari will dole out an additional $1.75 million to unsecured creditors over three years following its exit from bankruptcy. Those same unsecured creditors unanimously approved the plan, even though it will see them collect a fraction of the $10.3 million they had been owed.

When it originally entered bankruptcy, Atari planned to sell its entire catalog of rights to a single bidder. However, of the 180 potential buyers it approached, only 15 placed bids, none of which were considered acceptable.

Atari then attempted to sell its catalog off piecemeal at auction. While its big-ticket franchises (Roller Coaster Tycoon and Test Drive, at minimum $3.5 million and $1.5 million bids, respectively), failed to draw bids, some other fondly remembered franchises were snatched up. World of Tanks developer Wargaming picked up the Masters of Orion and Total Annihilation series, while Rebellion Interactive won Battlezone and Moonbase Commander. Stardock also successfully bid on the rights to the Star Control series.

Login or register to post

Take part in the GamesIndustry community

Register now