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Ch. 7 Bankruptcy

Video Game Publisher Acclaim Files for Ch. 7 Bankruptcy

Authored by Mark Hefflinger on September 3, 2004 - 5:38am.
Glen Cove, N.Y. -- Struggling video game publisher Acclaim Entertainment announced that it has filed for Ch. 7 bankruptcy in the Eastern District Court of New York, after failing to secure a replacement loan for its expired agreement with GMAC Commercial Finance. Under the Ch. 7 filing, the company -- which listed debt of over $100 million -- will have its assets, listed at between $10 and $50 million, liquidated, with the proceeds distributed among creditors. It is not clear yet what will happen to titles that were soon to be released, such as "100 Bullets," "Juiced" and "The Red Star." In addition to its inability to secure a new lender, New York-based Acclaim recently restated results from the past three years after discovering an accounting error, experienced weak sales of its titles, and was sued by celebrity partners including Mary-Kate and Ashley Olsen and BMX rider Dave Mirra. The company employed 600 developers and staff in the U.S. and U.K.
tags: Law | Video Game Publisher | Acclaim | Ch. 7 Bankruptcy |