Atari parent files for bankruptcy protection in French courts as dire financial situation is revealed

A day after Atari Inc filed for Chapter 11 protection in the USA, citing efforts to split from its unprofitable French parent company, today said French parent filed for similar protection against creditors in the French Courts. Both Atari SA and Atari Europe SAS have filed for Book 6 protection. In a bizarre twist, a new press statement was issued today stating that both Atari Inc and its French parent are coordinating efforts to protect the company. Atari’s dire financial position has now been revealed. Atari’s board met last month to discuss options as a deadline for a previous restructuring arrangement with BlueBay loomed. BlueBay agreed to extend the term for their $21 million debt until March 31st 2013 but warned they could not offer any further funding or assistance, and were continuing...

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Atari files for bankruptcy protection

Atari Inc has filed for bankruptcy protection today in an attempt to split itself from its loss making French parent company, Atari S.A. Atari has struggled to be profitable for some time, selling off assets and focusing on low-cost online and mobile gaming - ditching big-budget titles such as the Test Drive franchise. Whilst today's move in New York could be a positive development as Atari aims to protect its key interests and assets and start again with a clean slate, more worrying is the news that Atari could sell off key intellectual properties such as the rights to Pong and even to the use of the famous Fuji symbol itself , in an attempt to raise cash. Is this a promising new start or is this just part of Atari's long and agonising...

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Posted in: atari,atari user,editorial,news