Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
Customize
User Settings
Styles:
LAN Parties
Upcoming one-time events:
Germany 08/31
Chicago, IL USA, IL 10/19

Regularly scheduled events

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.

Email Digg Facebook Twitter   Share More    


 

   Current Headlines
MechWarrior Lawsuit Settled
Life is Strange 2 in September
The Sims 4 Seasons Released
On Sale
Evening Patches
Evening Interviews
Op Ed
Evening Previews
Evening Consolidation
Evening Mobilization
Evening Tech Bits
Evening Legal Briefs
Into the Black
Red Dead Redemption 2 PC Plans?
PUBG Launches Sanhok Map and Event Pass
World of Warcraft Welcome Back Weekend
Black Mesa Status
RESIDENT EVIL 2 Specs
Moodust Portal Demo
Gatherings & Competitions
  

 



footer

Blue's News logo