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Video game maker Atari Inc. is seeking court approval for the sale of all its assets as it works its way out of bankruptcy protection, Reuters reported yesterday. The company said on Tuesday that it tried looking for a buyer with the help of its investment banker Perella Weinberg Partners, but was unable to find a stalking-horse bid acceptable to it. Atari has set a minimum bid of $15 million for the Atari brand. The company received a $5 million debtor-in-possession financing from Alden Global Value Recovery Master Fund LP.

Charlie Ergen, chairman of satellite-TV provider Dish Network Corp., made a $2 billion bid for radio frequencies from LightSquared Inc., the bankrupt wireless-broadband company owned by Philip Falcone’s hedge-fund firm, Bloomberg News reported yesterday. Ergen has offered to buy the spectrum even though the Federal Communications Commission has yet to approve its use. Reston, Va.-based LightSquared filed for bankruptcy last year after regulators blocked approval to build its network on concern it would interfere with global-positioning system signals. LightSquared would use the proceeds from selling its airwaves to pay off secured debt, according to the people. The company has until May 31 to accept the offer, which was made May 15.

LightSquared posted a $48.1 million loss in April, bringing the company's total losses since its May 2012 bankruptcy filing to $660.8 million, Dow Jones Daily Bankruptcy Review reported today. The company, which earlier this month received a piece of good news from the Federal Communications Commission about sharing wireless spectrum to test its mobile network, said that it spent $1.1 million for its spectrum reuse fee during April, bringing that total to $10.4 million during its bankruptcy.

TimeGate Studios Inc., a video game developer behind “Section 8” and “Aliens: Colonial Marines,” has filed for bankruptcy and has put its business on the auction block after an appellate court reinstated a $9 million judgment against the company, the Wall Street Journal reported on Saturday. TimeGate’s lenders have agreed to serve as the stalking-horse bidder for an auction of the company’s assets in a deal valued at $2.6 million. The purchase price, which must include at least $150,000 in cash, is subject to higher bids at a bankruptcy auction.

Maxcom Telecomunicaciones SAB said that it is considering operational and financial alternatives, including a chapter 11 filing, after a takeover deal with Ventura Capital Privado SA collapsed, Bloomberg News reported yesterday. The Mexican phone company said yesterday that only 61.93 percent of old notes were tendered in a bond exchange, not enough to complete a swap, which was a requirement for an equity offer from Ventura Capital. "In light of this outcome, Maxcom is considering all of its alternatives including, but not limited to, commencement of a chapter 11 case or other restructuring proceeding," the company said. The Mexico City-based operator did not provide a timeframe for the options under study.

New York-based KIT digital Inc., which helps get video content to stream over the Web, filed for chapter 11 protection yesterday to get rid of some of the underperforming businesses it purchased during a $320 million buying binge, Dow Jones Daily Bankruptcy Review reported yesterday. Chief Financial Officer Fabrice Hamaide told a bankruptcy court that the company already has a plan to emerge from bankruptcy and "preserve its global operations and the jobs of its over 800 employees worldwide."

KIT Digital Inc., which provides products to help digitize television viewing, said in a regulatory filing yesterday that it is preparing to file for chapter 11 bankruptcy protection after finding buyers to salvage core assets of the company, Dow Jones Daily Bankruptcy Review reported today. The New York-based company, which produces customizable software platforms for services such as video on demand or the ability to watch television shows on an iPad, could seek bankruptcy protection as soon as next week, the filing said.

A hedge fund with ties to satellite mogul Charlie Ergen is headed for a bankruptcy-court showdown with Wall Street financier Philip Falcone over the fate of his LightSquared Inc. wireless venture, opening up yet another front in the battle for ownership of the airwaves needed to launch future mobile networks, the Wall Street Journal reported today. Sound Point Capital Management LP, a hedge-fund firm run by one of Ergen's former bankers, has been buying up LightSquared debt and now holds more than $600 million of the wireless company's roughly $1.7 billion bank loan, said people familiar with the trades. It is unclear whether Ergen or his company, satellite-television operator Dish Network Corp., has played a role in Sound Point's trading. The position gives Sound Point, which holds roughly $1.8 billion in assets, greater influence over LightSquared's bankruptcy proceedings and the potential to try to wrest control of the case from Falcone, the company's main backer through his hedge-fund firm, Harbinger Capital Partners.

Nortel Networks Inc., the bankrupt telecommunications company, won final court approval of a $66.9 million settlement over retiree benefits, Bloomberg News reported yesterday. Bankruptcy Judge Kevin Gross yesterday approved the agreement, negotiated with a committee representing retirees, that applies to Nortel's U.S. employees. Nortel, based in Mississauga, Ontario, filed for bankruptcy in Canada, the U.S., the U.K. and France in 2009. The case is Nortel Networks Inc., 09-10138, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Verizon Communications Inc., the second-biggest U.S. telephone company, was sued for $2.85 billion in debt and interest stemming from its relationship with bankrupt directory company Idearc, Bloomberg News reported on Saturday. The suit involves the non-payment of debt evidenced by 8 percent senior notes due 2016 that were issued pursuant to an agreement between Idearc and U.S. Bank N.A. as indenture trustee dated November 2006, according to court filings. The trustee filed the suit in New York State Supreme Court in Manhattan yesterday. Verizon spun off Idearc, its directory business, in 2006. Creditors contend the spinoff, designed to generate $9.5 billion for Verizon, left Idearc with so much debt that it was insolvent and destined to collapse. It filed for bankruptcy 28 months after the spinoff.