Post Comment - Blue's News

Atari U.S. Files for Bankruptcy

[Jan 21, 2013, 09:32 am ET] - Share - Viewing Comments

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.

Post Comment
Enter the details of the comment you'd like to post in the boxes below and click the button at the bottom of the form.

Re: Atari U.S. Files for Bankruptcy

Jan 21, 2013, 09:25

Beamer

Ozmodan wrote on Jan 21, 2013, 08:59:
Atari, one of the most mismanaged companies in the genre. Fire the top executives and you might end up with a respectable company. Current execs are completely worthless!

What's respectable?

Does anyone even know who Atari is? I mean, we know who it was, but the name has been passed around infinitely. Who is it now? Infogrames owns it, and they're certainly not respectable. And I think Atari owns Cryptic, who you can argue is respectable, but that's part of Atari, not Atari itself.

What is Atari that you think it may be respectable?




------------- Music for the discerning: http://www.deathwishinc.com http://www.hydrahead.com http://www.painkillerrecords.com

Subject

Comment [quote="Beamer"Jan 21, 2013, 09:25][quote="Ozmodan"Jan 21, 2013, 08:59]Atari, one of the most mismanaged companies in the genre. Fire the top executives and you might end up with a respectable company. Current execs are completely worthless! [/quote] What's respectable? Does anyone even know who Atari is? I mean, we know who it was, but the name has been passed around infinitely. Who is it now? Infogrames owns it, and they're certainly not respectable. And I think Atari owns Cryptic, who you can argue is respectable, but that's part of Atari, not Atari itself. What is Atari that you think it may be respectable? [/quote]

;) :( :o %) :) :| ;P X| :D More

If you have a signature set up, it will be automatically appended to your comment.
If you don't already have a Blue's News user account, you can sign up here.
Forgotten your password? Click here.

Email me when this topic is updated.

Special Codes

b[bold text]b
i[italic text]i
u[underline text]u
-[~~strikethrough text~~]-
c[code text]c
+[bullet point]+
q[quote text (indented)]q
[quote="Author"]quote text (indented)[/quote]
[url=Link]text[/url]
r{red text}r
g{green text}g
b{blue text}b
m{maroon text}m
s{secret text (shows in the background colour)}s

Forum Rules

Disagree all you want but attacks of a personal nature will not be tolerated.
Ethnic slurs and homophobic language will not be tolerated.
Do not post spam, links to warez sites, or instructions on how to obtain pirated software.
Abusing the forums in any manner that could be construed as 'griefing' will not be tolerated.