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Atari U.S. Files for Bankruptcy

The U.S. arm of Atari has filed for Chapter 11 bankruptcy in New York as part of an effort to separate itself from its financially troubled French parent company, reports latimes.com (thanks Develop). Here's an excerpt that sums up the situation:

But the company's growth potential has been hampered by its near total reliance on London financial company BlueBay Asset Management for cash. A $28-million credit facility with BlueBay lapsed Dec. 31, leaving Atari without the resources to release games currently in the works, including a real-money gambling title titled "Atari Casino."

Efforts to recapitalize the corporation have been unsuccessful, in part because of its complex structure as essentially an American business with a French public stock listing.

Shares in Atari S.A. have dropped in value from more than 11 Euros in 2008 to less than 1 Euro recently.

Atari Inc. has secured a commitment for $5.25 million dollars in debtor-in-possession financing to continue operations and release games. If Chapter 11 is successfully completed, the U.S. business could reemerge with its own resources and little or no debt to BlueBay.

It's not yet clear who might step up to buy Atari Inc., although Wilson will probably seek backers to help him keep control. It's also possible the company could be sold to another buyer, whole or in pieces.

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7. Re: Atari U.S. Files for Bankruptcy Jan 21, 2013, 10:42 Creston
 
Parallax Abstraction wrote on Jan 21, 2013, 09:08:
Even when the industry was doing really well back in 2003-2008, Atari still managed to lose buckets of money.

On paper. Always remember that these losses are on paper, and are typically the result of blatant felony-level outright lies creative accounting.

EA has been losing money since like 1927, but the company is still perfectly fine, and the IRS apparently doesn't find this peculiar.

(of course, the US government does the exact same thing: Lose money hand over fist and keep on trucking. :p )


I gotta agree with Beamer, there's nothing about Atari that is respectable since they got bought by Infogrames. It's a miserable piece of shit company that ruins licenses, releases poorly tested games then refuses to patch them, and in general is a fucking blight on the game industry.

The sooner it dies, the better. Maybe someone decent can buy the licenses/IP they hold and do something interesting with them.

Creston
 
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