Atari's U.S. branch received court approval yesterday for a three-year recovery plan to exit bankruptcy, reports The Wall Street Journal.
The plan was approved by Judge James Peck in U.S. Bankruptcy Court in Manhattan and unanimously supported by Atari's unsecured creditors, who are owed $10.3 million.
Atari will pay back the full $3.8 million owed to bankruptcy lender Alden Global Capital and use its remaining cash to pay $560,000 a year for the next two years to its creditors. The final year in the three-year plan will see Atari pay $630,000 to its creditors.
During the decision yesterday, Judge Peck thanked involved parties for efficiently handling what he called "a difficult case."
Atari's U.S. branch filed for Chapter 11 bankruptcy in January earlier this year in an effort to "break free" from its parent company. Atari then attempted to sell its IP library of more than 200 video games. These assets were initially priced at $22.2 million in an attempt to recoup some of the company's losses. According to The Wall Street Journal, only 15 preliminary bids for the properties were made and none were deemed "acceptable" by Atari, leading the company to sell its IPs separately.
In July, it was revealed that a number of properties had been purchased by other studios and companies. Nordic Games acquired the Desperados and Silver IPs, while Wargaming and Stardock vied for franchises including Total Annihilation and Master of Orion. Private equity firm The Evergreen Group purchased the rights to Backyard Sports.