An appeal for a three-year recovery plan for Atari’s US branch has been approved by court to help the company swim out of the harsh waters of bankruptcy.
During this period, Atari will have to pay back less than $10.3 million which it owes to various creditors. Some will receive the full payment while others will have to suffice for a smaller amount.
The Wall Street Journal breaks that down into Atari paying back the full $3.8 million to bankruptcy lender Alden Global Capital and using its remaining cash to pay $560,000 a year for the next two years to its creditors. The company will then pay $630,000 to its creditors in the final year.
The recovery plan was approved by Judge James Peck in U.S. Bankruptcy Court in Manhattan, who called it a “difficult” case.
Atari filed for Chapter 11 bankruptcy in January of this year and initially planned to sell off its catalog in order to pay its debts. That catalog amounted to more than 200 games , which were originally priced at $22.2 million. However, only 15 bids were placed, all of which were refused by Atari.
The company then opted to sell its IPs separately and saw to Wargaming take Masters of Orion and Total Annihilation IPs, Stardock took the rights to the Star Control series, and Rebellion Interactive purchased Battlezone and Moonbase Commander.