Acclaim officers prep to file bankruptcy docs today
Company will seek to liquidate assets and pay off as many debts as possible; public announcement to follow as early as tomorrow.
Reliable sources close to the executive management team of Acclaim Entertainment say the company will file Chapter 7 bankruptcy documents late today. The company will alert the industry, the press, and its creditors via an announcement that could come as early as tomorrow.
Acclaim has already terminated more than 600 employees worldwide. Those employees, according to one high-ranking executive, were given no severance pay or package, no continuation of benefits, and no right, even, to continue their own benefits through the federally mandated program commonly referred to as COBRA.
Under Chapter 7 bankruptcy, Acclaim will likely ask the bankruptcy court to discharge most debts it currently carries, with creditors given a priority ranking by the administrative court and monies being distributed according to a court-ordered plan.
Some insiders saw the downfall coming for a long time. Said one now-former employee reflecting on the company's demise: "You can't put out less-than-competitive product for this long and not have it catch up with you."
Most industry watchers were impressed with the lineup of games that was due from Acclaim this holiday season. The future of upcoming Acclaim games, such as Juiced and The Red Star, remains unknown at this time.
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