The three-year bankruptcy recovery plan of Atari’s U.S. branch received court approval yesterday, The Wall Street Journal reports.
Judge James Peck in U.S. Bankruptcy Court in Manhattan approved the plan, and it was also supported unanimously supported by Atari’s unsecured creditors. The plan will see Atari pay back the full $3.8 million owed to bankruptcy lender Alden Global Capital. The company will then use its remaining cash to pay $560,000 a year to its creditors for the next two years. Atari will then pay $630,000 to its creditors in the third year of its plan.
Atari’s U.S. branch filed for Chapter 11 bankruptcy back in January as part of an effort to break away from its French parent company Atari S.A. Atari then attempted to sell its IP library at an initial price of $22.2 million. Only 15 preliminary bids were made however and Atari did not deem any of them “acceptable” which led the company to sell its IP separately.