Atari earns court approval to emerge from bankruptcy

Atari's Chapter 11 (reorganization) bankruptcy, announced in January and followed by auctions of its assets, is coming to its phoenix conclusion. The Wall Street Journal reports Atari has received court approval for its plan to rise from bankruptcy.

The plan involves paying back the $3.8 million owed to bankruptcy lender Alden Global Capital. Once Atari is operating on its own, it'll also start paying $1.75 million to unsecured creditors over a stretch of three years. Those creditors are actually owed $10.3 million, but their agreement in the plan suggests that they're aware they'll probably never see that full sum again.

It'll be interesting to see if the company can soar again, but we're pretty sure those E.T. cartridges will remain in their sandy slumber.

This article was originally published on Joystiq.