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Acclaim Entertainment Files for Bankruptcy
Prof. Jonathan Ezor, Touro Law Center writes "According to this story in Long Island Business News, Acclaim Entertainment has filed for Chapter 7 bankruptcy in the Eastern District of New York bankruptcy court, meaning it will liquidate its assets and shut down. The story states in part, 'Computer game maker Acclaim Entertainment (Nasdaq: AKLM) has filed for voluntary Chapter 7 bankruptcy, which would result in the liquidation of the company's assets. The company filed papers in U.S. Bankruptcy Court in Central Islip that estimated its debts at more than $100 million and its assets at $10 million to $50 million. The filing said it had more than 200 creditors.' Game Over."
Generally speaking, a Chapter 7 is forced by the creditors. The creditors who don't think the company will make it petition the court. The petitioning parties are most likely to receive money, along with those with preferred stock, if it's publicly held. Regardless, you'd send a petition to the court at this point, if you haven't already. The court will attempt to equitably divide the remaining assets, and potentially recover assets paid recently to creditors, so that a company doesn't pay off its chummy buddies, then go into bankrupcy with a pittance to pay off everyone else.
You like splinters in your crotch? -Jon Caldara
You don't. When a company files for Bankruptcy, they are required to notify all of their creditors. The creditors are then divided up by certain criteria. I work at a collection agency, and I've seen some co-creditors get most of "what's left" and others get none at all. I'm not sure exactly how that works (I'm not explicity involved in these sorts of things), and who chooses who gets what. Of course, if there isn't full financial disclosure (hidden assets) lawsuits will no doubt ensue.