Enter your email address and start getting breaking law firm and legal news right now!
|Promote Your Attorney Profile on Law.net - Get Found / Earn More!|
Videogame maker Atari Files for Chapter 11 Bankruptcy
Prior to that, the U.S. operations filed for bankruptcy late Sunday, as reported by the LA Times.
Atari filed for bankruptcy after failing to find anyone to take the place of its sole lender BlueBay. The U.S. operations has filed for Chapter 11 bankruptcy in New York and plans to seek independent capital for branching out into digital and mobile games.
Atari Inc has issued a statement outlining future plans that include securing $5.25 million in financing from Tenor Capital. The U.S. operations plans to either restructure or sell almost all of its current assets within the next few months.
Atari said the bankruptcy proceedings were inevitable as it sought to protect itself from creditors with its “strain on cash resources” due to “adverse trading conditions and limited development funds.”
As LA Times reported, a $28-million credit facility with BlueBay lapsed in Dec. 31.
Jim Wilson, the Chief Executive of Atari said that seeking bankruptcy protection was the best option for protecting the company and its shareholders, and that the company would continue to seek to maximize its proceeds.
The statement mentioned, “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 unrealized while under the control of Atari SA.”
Famous games by Atari include Pong, Asteroids, Centipede, Missile Command, and Battlezone.Videogame maker Atari Files for Chapter 11 Bankruptcy by Scott