PARIS Jan 21 Video game company Atari SA
said it filed for bankruptcy protection in Paris and
New York on Monday after it failed to find a successor to main
shareholder and sole lender BlueBay as it wrestles with tough
The U.S. operations plan, in addition, to separate from
their French parent to seek independent capital to grow in
digital and mobile games, Atari Inc said in a statement.
The U.S. businesses plan to sell or restructure all or
almost all of their assets in the next three to four months and
are seeking $5.25 million in financing from Tenor Capital, Atari
Atari SA said it had taken the steps to protect itself from
creditors as its credit facility with BlueBay was due on March
31 and because of the "strain on cash resources" due to "adverse
trading conditions and limited development funds".
Atari SA said no investor had been willing to replace
BlueBay as its reference shareholder and main creditor because
of its French listing, complicated capital structure and the
difficult economic and operating environment.
The company said it owes 21 million euros ($28 million) to
Atari SA Chief Executive Jim Wilson said the company's
decision to seek bankruptcy protection was the best option to
protect the company and shareholders, and said it would seek to
Atari Inc added: "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
unrealised while under the control of Atari SA."
Atari's game titles include Pong, Asteroids, Centipede,
Missile Command, Battlezone and Tempest.