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Atari US files for bankruptcy

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Mon Jan 21 2013, 11:48
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GAMING STALWART Atari has filed for bankruptcy protection in the US and is seeking to break away from its French parent.

The firm wants the US business, and three other companies, Atari Interactive Inc., Humongous Inc. and California U.S. Holdings Inc, to be treated as a separate entity from the French operations and has filed bankruptcy on them all in one case in a New York court.

Atari is the firm that gave the world Pong around forty years ago. It has shown its face in gaming circles ever since. It wants to continue its successes, but in a different way. In a statement the firm said that splitting is the best way of keeping things together.

"The Chapter 11 process constitutes the most strategic option for Atari's U.S. operations, as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari S.A. During this period, the company expects to conduct its normal business operations," it said.

Atari is looking for a chance to raise some extra cash and it said that while it is looking for "independent capital for future growth", it is also trying to take $5.25m as debtor-in-possession from Tenor Capital Management.

Atari said that it expects to carry on its business, which recently shifted towards a focus on classic reissues and smartphone and tablet based games. It said that these, plus advertising, have realised consecutive annual profits in the last two years. µ

 

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