• by David Goetzl  @dgoetzl, April 6, 2011

4Kids Entertainment, which programs a five-hour Saturday morning block on the CW network, filed for bankruptcy protection Wednesday. Among the matters pressuring the company is a legal battle with the Japanese companies that have licensed the Yu-Gi-Oh! anime brand.

In a statement, interim Chairman Michael Goldstein said that 4Kids may pursue a sale or another strategic alternative, but will continue to operate as usual during the proceedings in New York federal bankruptcy court.

With the filing, the lawsuit 4Kids is facing over Yu-Gi-Oh! -- a brand that accounted for a huge percentage of its 2010 net revenue -- will be on hold. Goldstein stated that 4Kids made efforts to settle the matter.

For the CW, 4Kids leases five hours of Saturday morning time and sells the ads itself for a Toonzai programming block that carries a "The CW4Kids" brand. The "Yu-Gi-Oh!" anime franchise accounts for three half hours. Other anime series "Sonic X" and "Dragon Ball Z Kai" are included.

4Kids has a five-year deal beginning with the 2008-09 season with the CW. 4Kids had programmed a Saturday morning block for Fox before.

The 41-year-old 4Kids has rights to distribute Yu-Gi-Oh! programming globally except in Asia.

4Kids, which has a significant licensing business, lost some $27.2 million in 2010 on $14.5 million in net revenue.

The 4Kids London-based international subsidiary is not part of the bankruptcy cause.