Acclaim files to liquidate assets

Originally reported by the Long Island Business News

GLEN COVE - 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. The company, which has been on shaky financial ground for months, made the filing after sending employees home on Friday and closing its headquarters. Acclaim's credit agreement with GMAC Commercial Finance lapsed in August and the company warned that it could face bankruptcy if it was unable to find a new lender.

Founded in 1987, Acclaim makes computer games such as "Showdown: Legends of Wrestling", "All-Star Baseball 2005" and "Alias."

Efforts to reach Acclaim officials were unsuccessful.