Some of our Kentucky readers may remember playing video games such as Centipede, Missile Command, Asteroids, Battlezone and Pong years ago. Lovers of those games may not be seeing those titles again, as the company responsible for them, Atari SA, has filed for bankruptcy protection in both New York and Paris.
The company was unable to find a successor to BlueBay, the main shareholder and sole lender, through the tough conditions of the market. Atari says they are trying to protect themselves from creditors because of the strain on financial resources as a result of less-than-ideal funding for development and trading conditions.
In the next three to four months, the U.S. businesses are planning to sell and/or restructure essentially all of their assets and are reaching out to Tenor Capital for $5.25 million in financing. Atari SA has said that no one investor thus far has been willing to step in as the successor for BlueBay and become Atari’s reference shareholder and main creditor for many reasons.
Atari’s French listing, difficult economic and operating environment and complicated capital structure are just a few of the reasons Atari SA has given for their inability to find another investor to replace BlueBay. Currently, the company owes a reported $28 million (which equates to 21 million Euros) to BlueBay.
Atari Inc believes that filing for Chapter 11 bankruptcy is the best choice for the company in the way that it will help Atari’s U.S. operations. Unlocking potential revenue that was overlooked by Atari SA and preserving the company’s inherent value are the main end goals for this company.
Source: thomsonreuters.com, “Atari files for bankruptcy protection,” James Regan, Jan. 22, 2013